Hong Kong to Regulate Ride-Hailing Services Amidst Industry Pushback

Hong Kong government plans to regulate online car-hailing platforms like Uber through licensing and tougher penalties for illegal services. The proposal aims to address the taxi industry's concerns and improve taxi service quality. Authorities aim to finalize legislative details by 2025, with lawmakers set to discuss the proposal on Friday.

The Hong Kong government is set to regulate online car-hailing platforms through licensing and tougher penalties on illegal ride services, affecting tech giants like Uber.

Transport officials submitted a proposal to the legislature, requesting further study and assessment of requirements, including obtaining licenses and the number of vehicles allowed on online platforms, aiming for completion by 2025.

The local taxi industry has consistently viewed platforms like Uber as a business threat. In Hong Kong, providing paid services without a private vehicle permit is illegal; police have previously arrested and fined Uber drivers operating without permits. Uber remains popular due to resident dissatisfaction with taxi services.

The government document seeks a "win-win" for the transport industry and passengers through improved service quality and licensing. Further measures include impounding vehicles and suspending licenses for unauthorized services. Uber supports regulation but warns that license caps could hurt drivers relying on flexible earnings. Lawmakers will discuss the proposals on Friday.

(With inputs from agencies.)