With the newly proposed regulatory framework for online ride-hailing services, Secretary for Transport and Logistics Mable Chan emphasized the necessity of imposing limits on the issuance of vehicle licenses to mitigate market speculation.
Speaking on a radio program on Sunday, Chan explained that the number of ride-hailing vehicles cannot expand indefinitely, noting that factors such as passenger travel experience, balance in the public transport ecosystem, and road capacity will be taken into account.
While the proposed framework aims to establish a dual-track model that supports both taxi and ride-hailing services, Chan stated that unlimited licensing could engender detrimental competition, characterized by cut-throat price competition and inconsistent service quality.
In response to proposals from the taxi industry advocating for the auctioning of ride-hailing licenses, Chan clarified that vehicle licenses will not be transferable and will be subject to a time limit to maintain service quality and avert speculation that could compromise standards.
Regarding the stipulation of a maximum vehicle age of seven years for ride-hailing vehicles, the transport chief explained that the standard is informed by practices observed in other regions, where some locales impose a limit of five years, whereas others extend it to eight years.
Concerning ride-hailing platforms, Chan stated that no restrictions will be imposed on licensing, as the regulatory framework is designed to foster healthy competition.
She elaborated that rather than regulating operational models such as dispatching, the emphasis on competition would serve to stabilize driver operations and elevate service quality.
While all ride-hailing drivers will be mandated to pass a written assessment, Chan specified that taxi drivers will be exempt from this requirement.
She pointed out that there are about 46,000 active taxi drivers among the 200,000 registered taxi drivers in Hong Kong, all of whom have undergone rigorous assessments covering road conditions, traffic rules, and taxi regulations, thereby meeting the requirements for ride-hailing drivers.
Chan also indicated that the authorities aim to optimize the taxi written test and attract more individuals to the ride-hailing industry through a simplified assessment, with details expected to be announced as early as this year.
Additionally, Chan revealed that the government intends to introduce primary legislation for the framework in the third quarter of this year, with subsidiary legislation to be passed in the first half of next year to implement licensing terms and regulatory details.
(Phoebe Poon)
