Govt to issue 10,000 ride-hailing licenses amid debate over fares and driver requirements

The Hong Kong government is moving forward with a plan to issue 10,000 ride-hailing vehicle licenses in an effort to regulate the industry while maintaining the stability of the local public transport ecosystem.

During a recent Legislative Council subcommittee meeting, transport officials addressed lawmakers' concerns regarding fare regulations, driver operating thresholds, and algorithm fairness, firmly rejecting calls to impose a minimum fare for the new services.

Rejecting market intervention and minimum fares

Secretary for Transport and Logistics Mable Chan explained to the relevant legislative subcommittee that the government intends to utilize a strict quota system to preserve a balanced public transportation environment.

Responding to a suggestion from Roundtable lawmaker Mark Chong Ho-fung to establish a minimum fare for ride-hailing services that matches traditional taxi meters,

Chan argued that such a move would equate to market interference and negatively impact consumer choices.

She further noted that it is uncommon for authorities in mainland China or overseas to restrict platform commission rates, emphasizing that the Commissioner for Transport retains the authority to modify license conditions at any time as the market evolves.

Addressing concerns over the sharing economy

The proposed regulations also sparked concerns about the future of part-time drivers.

Lawmaker Chau Siu-chung of the Federation of Hong Kong and Kowloon Labour Unions questioned whether the government's minimum operational requirements were set too high, potentially destroying the original concept of a sharing economy by effectively restricting the market to full-time drivers.

In response, Chan clarified that the operational threshold would be calculated based on a driver's total number of completed orders over an entire year, rather than on a rigid daily or weekly basis.

She assured lawmakers that authorities would exercise discretion for drivers who are unable to meet the target due to special circumstances, such as prolonged illness or necessary vehicle repairs.

Furthermore, if a vehicle owner remains inactive for several consecutive months, the government plans to issue timely reminders to the driver through the respective ride-hailing platforms.

Monitoring algorithmic fairness

Transparency in how platforms dispatch rides was another major topic of discussion during the meeting.

Election Committee constituency lawmaker Adrian Pedro Ho King-hong inquired whether the government would require ride-hailing companies to make their algorithms public to prevent the unfair distribution of highly profitable orders among certain drivers.

Chan stated that the primary consideration for platform order distribution must always be the travel convenience and needs of the public.

She added that the Transport Department would closely monitor how platforms allocate their orders and would require the companies to provide detailed explanations for their dispatching mechanisms to ensure operational fairness.

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