Govt wants balanced market between ride-hailing services and taxis: Mable Chan

Secretary for Transport and Logistics Mable Chan said on Wednesday that taxis and ride-hailing services should coexist and complement each other, with the government retaining oversight to prevent excessively high or low pricing.

Her comments came as authorities yesterday (July 15) unveiled a regulatory framework for ride-hailing platforms, proposing a licensing system for operators, drivers, and vehicles.

The proposal will be submitted to the Legislative Council’s Transport Panel this Friday, with authorities aiming to pass the legislation within the current legislative session.

Balancing competition and consumer choice

Speaking on a radio program this morning, Chan stressed that the regulations prioritize public interest, ensuring safe and diverse transportation options.

Ride-hailing platforms will be licensed and required to pay fees, with operators responsible for monitoring drivers and service standards.

Pricing will remain market-driven, adjusting to supply and demand, though the government will intervene if necessary to prevent unfair competition, she said, adding that authorities will consult platforms and stakeholders to strike the right balance.

No cap on platforms, entry requirements apply

While the government welcomes new operators, Chan noted that an oversaturation of platforms could confuse consumers. Instead of imposing a limit, officials will set entry requirements, including operational scale, experience, and financial capacity.

The number of ride-hailing vehicles will be determined through stakeholder discussions, considering factors like user experience, demand patterns, and platform business models. 

Chan explained that taxis will remain the primary mode of stable transport, while ride-hailing services will act as a supplement, particularly during peak hours or late-night periods.

To attract new drivers, the scheme will allow part-time operators to use private cars, offering flexibility for younger entrants. However, authorities will dynamically adjust fleet sizes to maintain equilibrium, Chan noted.

Learning from global pitfalls: Avoiding price wars

Chan cited overseas examples where unregulated ride-hailing led to cutthroat pricing and market instability.

To prevent this, the government will retain pricing intervention powers, ensuring fair competition without undermining drivers’ earnings, whether in taxis or ride-hailing.

She said officials will continue gathering public feedback to refine the framework, with a goal to introduce the main ordinance within the third quarter of this year and secure passage within the legislative year.

"Finding common ground is key," Chan said. "We aim to create a sustainable ecosystem where both industries thrive while serving Hong Kongers’ needs."