The government's proposal to extend the age limit for ride-hailing vehicles to 12 years aims to ensure a stable supply of services and protect the livelihoods of current drivers, said Secretary for Transport and Logistics Mable Chan.
Her comments followed the unveiling of the regulatory framework for ride-hailing services, which was gazetted on Friday (Sep 5) and will be presented to the Legislative Council for its first and second reading debate this Wednesday (Sep 10).
Under the new proposal, ride-hailing vehicles could operate for a maximum of 12 years, up from the initial seven-year limit, provided they pass annual inspections, giving drivers an additional five years.
Reduced ride-hailing supply could harm public interest
Speaking on a radio program on Sunday (Sep 7), Chan emphasized that "safe travel" remains a top priority, noting that the decision to extend the vehicle age limit was made after careful consideration to maintain service support for citizens.
Taking different voices into consideration, Chan assured that the implementation of the regulatory framework will be more than just words, but will also allow additional flexibility for drivers interested in the industry.
In response to the public's mixed reactions, Chan cautioned that overly strict regulations could negatively impact existing drivers and the public.
She pointed out that there is currently no age limit for the 18,000 taxis, with 30 percent of them over 10 years old, adding that the taxi fleet system aims to support an orderly development in the industry.
Recognizing the importance of industry feedback, Chan stressed that the authorities will continue to engage with stakeholders.
Balance industry growth under new regulations
As taxis have been playing a vital role in providing point-to-point services for a long time, Chan stated that their advantages would continue to be upheld, especially with the ability to serve various pick-up and drop-off locations.
Chan underlined that the regulatory framework is to achieve a balanced and foster healthy competition between ride-hailing platforms and taxi operations.
Regarding the restriction on leasing or subletting registered ride-hailing vehicles, Chan noted that it aims to attract genuine service providers while preventing distortions in the rental market.
Chan also mentioned that unlicensed operators could face fines of up to HK$1 million and a year of imprisonment.
In light of recent reports of illegal drivers in the ride-hailing sector, Chan indicated that new regulations would require drivers to be Hong Kong permanent residents eligible to work locally.
As for concerns about limiting the number of ride-hailing vehicles, Chan explained that the number of available licenses would be determined based on situational requirements, guided by data and research.
To facilitate the integration of the taxi fleet into the market, the government plans to continue recruitment fairs in collaboration with the Labour Department -- having already recruited 1,000 drivers with a goal of achieving 1,000 operational vehicles by the end of September.
Additionally, Chan revealed plans to establish special port facilities for fleets at designated locations and enhance ride-hailing service convenience, with younger vehicle age being a key selling point for taxi fleets.