Uber calls for flexible ride-hailing regulations in HK, warns against vehicle caps

As Hong Kong prepares to debate new ride-hailing regulations this Friday, Uber has urged the government to avoid imposing strict vehicle quotas and to relax proposed restrictions on vehicle ages, arguing that the sector's natural demand fluctuations require more adaptable rules.

The company's appeal comes in response to the Transport and Logistics Bureau's recently unveiled framework, which would introduce licensing for platforms, vehicles, and drivers while capping the number of permitted vehicles.

In a detailed submission to the Legislative Council's Transport Panel, Uber emphasized that its operational data reveals significant hourly demand variations—as much as 66 percent—demonstrating the need for a flexible supply of drivers and vehicles to match passenger needs.

The company warned that rigid quotas could disrupt services, particularly given the already unpredictable nature of driver availability.

According to Uber, 60 percent of its drivers work fewer than 20 hours per week, and the platform experiences a 44 percent annual turnover rate among active drivers, meaning stable service depends on the ability to quickly adapt to changing supply.

Beyond opposing fleet size restrictions, Uber proposed adjustments to several key regulatory measures.

The company suggested that commercial insurance for ride-hailing vehicles should only cover periods when drivers are en route to pick up passengers or actively transporting them, rather than requiring full-time commercial coverage.

It also pushed back against the government's proposed seven-year age limit for vehicles at each license renewal, advocating instead for a 15-year maximum operational lifespan.

Under Uber's model, licenses would be renewable every three to five years at an annual fee of HK$1,000, with the option to pay for multiple years upfront.

On driver licensing, Uber proposed a 10-year validity period with a nominal HK$50 fee, contrasting with the government's suggested five-year term. The company also outlined voluntary safety commitments, including a zero-tolerance policy for drug and alcohol use, real-time in-app alerts for dangerous driving, and regular safety training for drivers.

(Marco Lam)