Hong Kong lawmakers pass bill to regulate ride-hailing services like Uber

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HONG KONG (AP) — Hong Kong lawmakers passed a bill Wednesday to regulate online ride-hailing services, requiring platforms like Uber, along with their vehicles and drivers, to be licensed, after years of backlash from the city's taxi industry.

The first licensed platforms are expected to start operating in late 2026 at the earliest, officials said.

In granting a license, Hong Kong's transport commissioner can consider the firm’s experience, financial capacity and intended investments in the region. Licensed companies will need to maintain “proper and efficient” services and ensure all vehicles and drivers on their platforms hold valid permits, according to the new rules.

Drivers are required to be at least 21, have held a private car driving license for at least one year and have no serious traffic convictions within five years. They also need to pass a test and take a pre-service course.

The bill marks an important step in the development of ride-hailing services in Hong Kong, which currently bans drivers of private vehicles from providing paid services to customers without a permit.

Uber Hong Kong welcomed the voting results. “This decision marks a significant milestone in integrating ridesharing into the city’s transport system and ensuring riders and drivers benefit from clear rules,” it said.

Police have previously arrested some Uber drivers suspected of driving without a permit and in 2018, more than two dozen drivers were fined.

Some taxi companies have long resisted online platforms like Uber, seeing them as a threat to their business.

Uber, which started operating in Hong Kong in 2014, has faced multiple legal and regulatory challenges in its overseas expansion but remains popular in the Asian financial hub, where many residents are frustrated with what they describe as poor taxi services.

Officials proposed a cap on the number of vehicles offering ride-hailing services under the new rules, which will be specified in a subsidiary legislation next year. If that legislation is passed, they will invite applications for licenses.

Uber Hong Kong said it looked forward to “constructive discussions” on vehicle quota mechanisms.

Anyone who operates a ride-hailing platform and provides services without a license will face a fine of up to 1 million Hong Kong dollars (about $128,600) and a maximum jail term of one year, according to the bill.

A platform that arranges cars or drivers without valid permits to serve passengers could be punished by a maximum penalty of six months imprisonment and a fine of 10,000 Hong Kong dollars ($1,286) per violation on a first conviction. For subsequent conviction, the maximum jail term would double, in addition to a higher fine.