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Chief executive John Lee Ka-chiu said the SAR government will impose an initial cap on ride-hailing licenses, with the number to be determined based on passenger demand, road capacity and Hong Kong’s transport conditions.
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Speaking before the Executive Council meeting on Tuesday, Lee said the Transport and Logistics Bureau was listening to views from different sectors of society and would formulate a suitable plan based on actual circumstances and data.
The government earlier submitted proposed subsidiary legislation on ride-hailing regulation to the Legislative Council, although no specific license quota has yet been announced. The regulatory framework is expected to be introduced as early as the fourth quarter of this year.
Lee said ride-hailing services had operated for years without regulation, prompting the government to begin drawing up a framework last October.
He acknowledged that society held differing views on the number of licenses that should be issued in the first phase.
Lee said the initial quota control mechanism would need to balance several factors, including passenger demand to ensure the public’s commuting experience remains broadly unchanged, Hong Kong’s road carrying capacity, and the fact that around 90 percent of residents rely on public transport daily.
He added that the government also needed to establish a mechanism to monitor actual market operations and data in order to dynamically assess and review the number of licenses.
Lee said the government’s goal in regulating ride-hailing services was to ensure they operate within a legal, compliant and safe framework, while promoting healthy competition and complementarity between taxis and ride-hailing platforms.
The arrangement aims to improve the overall quality of point-to-point transport services and provide the public with more reliable travel options, he added.
Meanwhile, Lee said the government will strengthen penalties and vehicle seizure arrangements to combat illegal “white-label car” operations, he added.
Authorities would consider views from all sides and review relevant data before submitting the subsidiary legislation to the Legislative Council within the first half of the year, Lee added.
