The proposed regulatory framework for online ride-hailing services was recently unveiled, introducing a new licensing system designed to enhance passenger safety and improve service quality.
Proposed by the Transport and Logistics Bureau, this framework encompasses non-transferable yet renewable licenses for platforms, vehicles, and drivers.
According to the framework, eligible drivers for ride-hailing platforms must be at least 21 years of age, possess a driving license for a minimum of one year, have no serious traffic violations within the preceding five years, and complete an assessment similar to that required of taxi drivers.
There will be no cap on the number of licenses issued to the drivers of these platforms; however, an upper limit on the number of vehicles authorized to serve the ride-hailing platforms is under consideration.
To qualify for registration as ride-hailing vehicles, certain criteria must be met, including a maximum vehicle age of seven years at the time of application, the procurement of third-party commercial vehicle insurance, completion of annual vehicle inspections, and registration in the name of the driver.
The licenses for platforms and drivers will be valid for a period of five years, while licenses for vehicles will be valid for one year and may be renewed annually for up to five years, after which reapplication will be necessary.
Furthermore, ride-hailing platforms will be required to pay a licensing fee based on the number of vehicles in operation, with authorities also contemplating a charge for each completed ride.
Meanwhile, the platforms will face application thresholds that include operational capability, capital investment, and financial proof.
Platforms are also required to exercise due diligence in monitoring their drivers and vehicles to ensure service quality, establish effective complaint-handling mechanisms, and implement driver rating systems.
Additionally, the Transport Department will conduct mid-term evaluations of licensed platforms to assess whether to extend their licenses after five years.
The proposed regulatory framework aligns closely with that of New South Wales (NSW) in Australia, according to local reports.
The NSW government charges AUD$1.20 (approximately HK$6) per ride, which the platforms subsequently pass on to passengers.
Regarding the platform licensing fees, the state charges an annual fee with various tiers based on the total number of rides in a fiscal year. The minimum annual fee is AUD$633 (about HK$3,255) for fewer than 20,000 rides, while the maximum fee is AUD$63,295 (about HK$ 325,000) for over 10 million rides.
The proposal will be discussed on Friday (July 18), and the government aims to submit the amendment bill and complete the review within this year.
(Phoebe Poon and Khan Heeba Lazmi)
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