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HONG KONG -- The Hong Kong government on Tuesday proposed issuing 10,000 new vehicle permits for drivers to work for online ride-hailing services like Uber, less than half the amount that industry representatives were hoping for.
Hong Kong has about 18,000 licensed taxis and caps private service car-hire permits at 1,500, and these drivers can be summoned through ride-hailing apps. But the additional drivers who operate through those apps technically are outside the law and in the past have faced arrest, though they are prevalent in the city.
The Hong Kong government unveiled details of a regulatory framework last summer to bring the industry under formal regulation, following years of pressure from taxi companies.
Smart Transportation Alliance, whose members include ride-hailing firms and other transportation companies, had proposed in May that 20,500 new car permits be allowed in an initial phase.
But in a document submitted Tuesday to the legislature, Hong Kong's Transport and Logistics Bureau said a cap of 10,000 would be prudent and appropriate, balancing the needs of passengers and public road resources. It said it would review the ceiling later to see if it needed adjustment.
The city’s lawmakers last year passed a bill to require licenses and permits for online ride-hailing platforms, along with their vehicles and drivers. 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.
Drivers must be at least 21, have a drivers license for at least a year and have no serious traffic convictions over the past five years. They also need to pass a test.
Under Tuesday's proposals, most of the new ride-hailing regulations would become effective in August, with the rest going into effect by August 2027. By then, all platforms will need to be licensed and ensure that all vehicles and drivers attached to them have permits.
The companies will have to use technology — such as face-recognition software — to make sure that drivers are indeed the owners of the vehicles they are using, according to the proposals.
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 drivers have long resisted online platforms like Uber, seeing them as rivals that threaten their businesses. But Uber, which started operating in Hong Kong in 2014, remains popular in the Asian financial hub, where many residents are frustrated with what they describe as poor taxi services. Uber began including licensed taxi drivers on its platform in recent years.
In a previous document submitted to the legislature, Uber's Hong Kong team has argued it has over 30,000 active drivers in the city over the past year. It said that even if 15,000 permits are issued and enforced, waiting times for a booking during certain periods may double compared to current levels, and that fares could rise by as much as 70%.
It said in a statement Tuesday that the legislative proposal was an important step toward establishing clear regulations, but that the initial quota is “significantly lower” than what is needed to meet riders’ demand. It said more than 20,000 people also would lose an opportunity to earn under the proposals.
“This legislation is just a start. We hope to continue working closely with the government on an efficient allocation framework and a practical review mechanism that allows the system to evolve over time,” it said.
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