The Secretary for Transport and Logistics, Chan Mei Po, recently announced that the government will impose a cap on the number of ride-hailing licenses, aimed at preventing intense competition within the industry. Authorities plan to submit amendments to the primary legislation to the Legislative Council in the third quarter of this year, with the goal of ensuring its passage within this legislative year, so that licenses can begin to be issued in the second half of next year.
According to the latest survey data from the Transport Department cited by Chen Meibao, an average of 880,000 people in Hong Kong use point-to-point public transport services daily, with taxis accounting for 80% of this usage and ride-hailing services making up the remaining 20%. The government hopes that after the legislation is completed, taxis will continue to be the main mode of transportation, while ride-hailing services will serve only as a supplementary option.
She pointed out that the government tends to avoid setting a cap on the number of licenses for ride-hailing drivers, but will impose restrictions on the total number of ride-hailing licenses. She explained that point-to-point transportation services are relatively inefficient in terms of passenger capacity, and the road capacity is also limited. Therefore, the government must balance the needs of society as a whole, prioritizing the efficiency of public transportation.
Chen Meibao emphasized that the government does not wish to issue vehicle licenses without limits, as this could lead to inconsistent service quality, lack of reasonable control, and protection. Citizens hope to enjoy comfort, safety, and the right to choose when taking ride-hailing services. Without proper regulation, there is a risk of malicious competition and undesirable circumstances arising, ultimately harming the interests of the public.
She mentioned that in other regions, the excessive number of platforms and the unrestricted issuance of licenses have led to fierce competition, even resulting in situations like Cut-throat pricing. This not only impacts drivers’ earnings but also hinders quality drivers with potential from entering the market. The authorities have decided to limit the issuance of licenses for ride-hailing services to avoid repeating the same mistakes.
The Transport Department will soon announce the content of the written test for ride-hailing drivers, with a focus on simplicity in the exam design. Additionally, Chan Mei-Po revealed that there are currently 200,000 registered and qualified taxi drivers across Hong Kong, with 46,000 being active drivers who have passed rigorous assessments to meet the standards required for ride-hailing drivers. The government is also hopeful that popular taxi drivers will apply to become ride-hailing drivers and aims to provide a streamlined application process.
