Hong Kong government seeks to regulate online ride-hailing platforms, likely to hit Uber

HONG KONG — Hong Kong authorities are moving to regulate online ride-hailing platforms with licenses and impose tougher penalties on illegal ride-hailing services, a move that could have a significant impact on tech companies like Uber.

Transportation officials sent a document to the Legislature on Monday asking lawmakers to further examine the proposal. Officials also said they will further evaluate and work out details such as licensing requirements and the number of vehicles that can be operated through online platforms. The authority plans to finalize the legislative proposals in 2025.

Hong Kong’s taxi industry has long opposed online platforms such as Uber, seeing them as a threat to its business.

In Hong Kong, private vehicle drivers are prohibited from providing paid services to customers without a permit. Police have arrested several Uber drivers in the past on suspicion of driving without a permit, and in 2018, the city’s court system fined more than two dozen drivers.

Uber, which launched in Hong Kong in 2014, remains popular in a city where many residents are dissatisfied with poor taxi services.

The San Francisco-based company has faced many challenges as it expands internationally, including legal and regulatory challenges.

In the document, the government expressed hope that by licensing and improving the quality of taxi services, it would be possible to create a win-win situation for both parties – the transport industry and passengers.

To further curb illegal ride-hailing services, city transport authorities have also proposed that if a car is found to be providing paid services to customers without a permit, judges could order the vehicle to be towed and its driver’s license suspended – even if the driver cannot be charged.

Uber welcomed the Hong Kong government’s decision to regulate ride-hailing platforms, but said in a statement that “it is crucial for the government to complement this move with a practical licensing system.”

The statement also said that limiting the number of “rideshare licenses” could be a blow to many drivers who rely on the platform for flexible earning opportunities.

Lawmakers are expected to discuss the government’s proposals on Friday.