HONG KONG (AP) — Hong Kong lawmakers passed a bill Wednesday to regulate online ride-hailing services, requiring platforms like Uber and their vehicles and drivers to be licensed, after years of backlash from the city's taxi industry.
According to officials, the first licensed platforms will begin operating no earlier than the end of 2026.
When issuing a license, the Hong Kong Transport Commissioner may take into account the firm's experience, financial capabilities and proposed investment in the region. Under the new rules, licensed companies will be required to maintain “adequate and efficient” services and ensure all vehicles and drivers on their platforms have valid permits.
Drivers must be at least 21 years old, have held a personal vehicle driver's license for at least one year, and have no serious criminal record for five years. They also need to be tested and take a preliminary course.
The bill marks a major step in the development of taxi services in Hong Kong, where private vehicle drivers are currently prohibited from providing paid services to customers without permission.
Uber Hong Kong welcomed the results of the vote. “This decision marks an important milestone in integrating ride-sharing into the city's transportation system and ensuring passengers and drivers benefit from clear regulations,” the statement said.
Police have previously arrested some Uber drivers suspected of driving without a permit, and more than two dozen drivers were fined in 2018.
Some taxi companies have long resisted online platforms such as Uber, viewing them as a threat to their business.
Uber, which began operating in Hong Kong in 2014, has faced numerous legal and regulatory challenges in its overseas expansion but remains popular in the Asian financial hub, where many residents are unhappy with what they call poor taxi services.
Officials have proposed limiting the number of vehicles offering taxi services under new rules to be outlined in supporting legislation next year. If this law is passed, they will invite applications for licenses.
Uber Hong Kong said it looked forward to “constructive discussions” on vehicle quota mechanisms.
Under the bill, anyone who operates a ride-hailing platform and provides services without a license would face a fine of up to HK$1 million (about $128,600) and a maximum prison term of one year.
A platform that provides vehicles or drivers without valid permits to serve passengers may face a maximum penalty of six months in prison and a fine of HK$10,000 ($1,286) for each offense on a first conviction. In the event of a subsequent conviction, the maximum prison term will be doubled and the fine will also be increased.
