Hong Kong may pave way for Uber as gov’t looks to regulate ride-hailing services
Hong Kong Free Press
Hong Kong is considering regulating ride-hailing platforms like Uber, with proposals to introduce a new licensing system for such services alongside tougher penalties for those found in breach of the law.
The Transport and Logistics Bureau presented a document to lawmakers on Monday in which it outlined the government’s plans to regulate ride-hailing services in the city. While Hong Kong law requires vehicles offering ride-hailing services to have a hire car permit, services such as Uber have been allowed to exist in a grey area.
In the document, the bureau said authorities were open to ride-hailing services, but that they must comply with the law to protect the safety and interests of passengers.
The bureau proposed a licensing system that would require service providers to have purchased insurance for the vehicles and the passengers, as well as ensure that drivers have met requirements such as completing health checks and background screenings.
It said it had studied how cities like Shenzhen, Singapore, and London regulated such online platforms.
The bureau also suggested further amending existing legislation, including empowering authorities to seize or suspend the licenses of vehicles that are believed to be used for illegal rides. The bureau said the move would cover vehicles for which the authorities are unable to identify the owners or the drivers.
“If the car belongs to a company, [that] could even affect the company’s normal business operations,” the bureau said in the Chinese document.
“We believe this penalty will carry a relatively potent deterrent effect to activities [relating to] illegally renting out [vehicles] or receiving compensation from driving passengers.”
The bureau also proposed suspending a driver’s license for one year if the driver is convicted of driving-related offences under the Road Traffic Ordinance. Existing legislation does not specify the period of suspension.
The bureau said it would conduct a follow-up study on the demand for ride-hailing services locally and overseas regulations of ride-hailing services within a year, before making recommendations on the number and types of vehicles suitable for ride-hailing platforms.
Police conducted “targeted enforcement actions” against illegal ride-hailing services, making 311 prosecutions between 2019 and 2023. The legislature also passed an amendment last December raising the penalty for illegal ride-hailing services, the bureau said.
It added that authorities had to wait for the verdict of a legal challenge launched by ride-hailing drivers, without specifying the details of the case. It aimed to make legislative proposals on the matter next year.
HKFP has reached out to Uber for comment.
Complaints
Uber arrived in Hong Kong about a decade ago, providing the city an alternative to traditional taxis. The ride-hailing cars offer cashless payment and what some have called a better customer experience compared to taxis.
Complaints about taxi services rose by more than 90 per cent from 2020 to 2022, the Transport and Logistics Bureau’s figures showed last April. The complaints include accusations of drivers refusing hire and taking longer routes.
In December, the government said it would review legislation to regulate ride-hailing services, ensuring only vehicles with permits provide services through platforms such as Uber.
Currently, those convicted of offering ride-hailing services without having a hire car permit are liable to a HK$10,000 fine and six months in jail. Reoffenders face up to a HK$25,000 fine and a year in prison.
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