Hong Kong government proposes first ride-hailing regulation; Uber raises concerns

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Uber became the first ride-hailing platform in Hong Kong in 2014 and has operated without formal regulation.

PHOTO: REUTERS

HONG KONG – The Hong Kong government laid out proposals on July 15 to regulate ride-hailing platforms such as Uber, following years of talks and complaints from the city’s licensed taxi drivers that they face unfair competition.

Uber became the first ride-hailing platform in Hong Kong in 2014 and has operated without formal regulation. The police raided its office in 2015 and have arrested Uber drivers for operating without licences.

The city’s taxi industry, which has been struggling with declining income, has said the lack of regulation gives ride-hailing services an unfair advantage.

In a paper submitted to the legislature, the Hong Kong Transport and Logistics Bureau said all platforms providing ride-hailing services must obtain a licence and comply with specific conditions.

Anyone who provides ride-hailing platform services without a valid licence may be subject to imprisonment and fines. In a statement to Reuters, a spokesperson for Uber HK said the regulation was an “important milestone”.

“We are encouraged to see safety and service standards – such as mandatory insurance, driver examinations, and regular vehicle inspections – placed at the centre of the proposed regime,” the spokesperson said.

But the statement also said that Uber was concerned about a proposed cap on the number of ride-sharing vehicles.

“Artificial limits risk increasing wait times, raising prices for riders, and restricting earning opportunities for drivers,” it said, adding that Uber looked forward to continued talks with the Hong Kong government and other stakeholders.

According to