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Government aims to complete legislative process this year

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Uber ( UBER ) welcomes regulation but says concerned about cap on

number

of vehicles

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Operating without a licence could mean imprisonment and

fines

By Jessie Pang

HONG KONG, July 15 (Reuters) - The Hong Kong government

laid out proposals on Tuesday to regulate ride-hailing

platforms, such as Uber ( UBER ), following years of talks and

complaints from the city's licensed taxi drivers that they face

unfair competition.

Uber ( UBER ) in 2014 became the first ride-hailing platform in Hong

Kong and has operated without formal regulation.

Police raided its office in 2015 and have arrested Uber ( UBER )

drivers for operating without licences.

The city's taxi industry, which has been struggling with

declining income, has said the lack of regulation gives

ride-hailing services an unfair advantage.

In a paper submitted to the legislature, the Transport and

Logistics Bureau said all platforms providing ride-hailing

services must obtain a licence and comply with specific

conditions.

Anyone who provides ride-hailing platform services without a

valid licence may be subject to imprisonment and fines.

In a statement to Reuters, a spokesperson for Uber HK said the

regulation was an "important milestone".

"We are encouraged to see safety and service standards -

such as mandatory insurance, driver examinations, and regular

vehicle inspections - placed at the centre of the proposed

regime," the spokesperson said.

But the statement also said Uber ( UBER ) was concerned about a proposed

cap on the number of ride-sharing vehicles.

"Artificial limits risk increasing wait times, raising prices

for riders, and restricting earning opportunities for drivers,"

it said, adding Uber ( UBER ) looked forward to continued talks with the

government and other stakeholders.

According to a survey carried out by Uber ( UBER ) of more than 4,800

Hong Kong drivers, nearly 80% fear that strict quotas and high

licensing fees could threaten their livelihoods.

The city's leader, John Lee, told a news conference on

Tuesday there was a consensus in society that ride-hailing

services must be regulated to protect the safety of passengers.

"I agree that the issue is complex, but I think the issue

should not be delayed any further and the government must come

up with a solution," Lee said.

He also said it was necessary to create an environment in

which the ride-hailing services and traditional taxis can

co-exist.

The Transport and Logistics Bureau said quota arrangements

would be proposed in the first half of 2026.

Prior to that, the proposals allow for the legal amendments

to be submitted to Hong Kong's Legislative Council for approval

in the third quarter of this year.

Under the new law, anyone seeking a ride-hailing drivers'

licence must be at least 21 years old, have held a private car

licence for at least one year, have no serious traffic

convictions in the last five years, and pass mandatory

assessments and training.