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The Star
28-07-2025
- Automotive
- The Star
Can taxis and ride-hailing services co-exist in Hong Kong under new rules?
Hong Kong's proposed regulation of ride-hailing services shows that the government intends to take a slice of the market while reining in platforms and supporting the taxi trade, but the plan hinges on balancing the competing interests of all players, experts have said. Industry insiders added that the Transport and Logistics Bureau faced several challenges in achieving all three objectives. Secretary for Transport and Logistics Mable Chan, who took office last December, told lawmakers on Friday of her determination to resolve the long-standing conflict between taxis and ride-hailing services. Taxi drivers have repeatedly raised concerns that many Uber drivers do not hold valid hire-car permits while platforms have argued they provided better service. The bureau unveiled its regulatory blueprint earlier last week, outlining a comprehensive framework for governing drivers, vehicles and platform operators. Besides listing the necessary licences and permits that operators and drivers must hold, the proposal also includes a yet to be specified cap on the number of vehicles providing ride-hailing services and a levy imposed on platforms for each trip. Officials have cited the experience of the Australian state of Victoria, which introduced a levy to compensate cabbies affected by the legalisation of ride-hailing platforms. The government will also charge platforms a licensing fee based on the number of vehicles they operate. US-based Uber started operating locally in 2014 and had taken a dominant position until recent years as Tada, Amap and Didi Chuxing entered the market. Amap is operated by Alibaba Group Holding, which also owns the South China Morning Post. 'Once the ride-hailing sector is opened up and legalised, it will be the beginning of a new era,' lawmaker Michael Tien Puk-sun said. 'I think that the demand is very big, especially with how severe extreme weather is nowadays.' Tien added that he believed demand in the city in the next five years could support a similar number of ride-hailing vehicles seen in Singapore. The city state currently has 59,371 such cars as of 2024, according to official data. Observers also noted that the government aimed to take a slice of the lucrative ride-hailing sector, curb the influence of platforms through regulation and charges, and support the taxi trade, a move which comes amid the launch of a premium cab fleet. Although the planned legal framework is pending further details, Ringo Lee Yiu-pui, governor and honorary life president of the Hong Kong, China Automobile Association, said the effectiveness of these strategies depended on whether the government could balance the different interests of all sides. Lawmaker Tien said he believed that the regulatory regime could meet the government's multiple goals. He said he did not think that cabbies would be forced out of the market as they still had the advantage of being able to pick up customers on the street, despite competition from ride-hailing operators. The bureau's survey conducted between November last year and January led to an estimate that showed ride-hailing services accounted for 22 per cent of 880,000 point-to-point trips with passengers a day, with the rest being taxis. In response to complaints about taxi drivers from tourists, who often cited cherry-picking of passengers and overcharging, the government issued its first of five taxi fleet licences earlier this week. The premium taxi fleets are designed to offer enhanced services at a higher fare. Walter Theseira, associate professor of economics at the Singapore University of Social Sciences, said that the ride-hailing sector had expanded rapidly with legalisation in Singapore and other markets, and he expected that the situation would be similar in Hong Kong. 'When ride-hailing becomes either legal or more tacitly endorsed, it expands very quickly and it [does so] largely because ride-hailing offers a superior consumer experience to traditional taxis,' he said. 'The main innovations actually being the online booking systems, tracking of your vehicle and everything, feedback, as well as fixed fares that are based on supply and demand.' He added that in Singapore's experience, many drivers had also decided to switch to ride-hailing after realising the greater earning potential afforded by these platforms. Whether ride-hailing platform operators could stay ahead, however, depended on if the taxi sector could implement practices such as app-based bookings, ratings and driver management. The academic said that taxis were unlikely to disappear from Hong Kong's transport landscape. Instead, he expected cabbies might prefer ride-hailing systems or apps to find customers. Theseira also raised concerns about the fairness of potentially only charging a levy on the ride-hailing sector, as well as how the taxi industry should be supported by authorities. 'Taxi drivers and operators, if you're going to support them, they should be supported to adapt to whatever market practices have been proven to be commercially successful by commuters in terms of those ride-hailing practices,' he said. 'It is not to support them to do the same old thing, unless that is really what commuters want.' -- SOUTH CHINA MORNING POST
The Star
19-07-2025
- Automotive
- The Star
Taxi drivers, passengers welcome new mandatory e-payment rules in Hong Kong
HONG KONG: Taxi drivers and passengers on Friday (July 18) welcomed Hong Kong's new mandatory electronic payment and in-car surveillance measures, saying the measures will help combat malpractice and restore public trust in the taxi trade. However, they urged the authorities to minimise disruptions to drivers' livelihoods, noting that many elderly, tech-illiterate drivers may struggle to adapt due to the limited time and resources available for training. From April 1 next year, all taxi drivers in Hong Kong — who have traditionally relied on cash payments, partly so they can retain small change and (in some cases) evade taxes — will be required to accept at least two e-payment options, according to the amendments to the city's road traffic regulations, gazetted on Friday. One of the options must be QR-code based, such as Alipay or WeChat Pay, popular among Chinese mainland tourists, and the other must be a form of contactless payment, including Octopus or credit cards, according to the amendments. In addition, in-car cameras, dashcams, and vehicle positioning systems — collectively termed Journey Recording Systems — will become mandatory by 2027 to enhance service quality. Once the installation is completed, taxis must connect to the Transport Department's central system to share surveillance data. The authorities have assured the public that access to the system will be strictly limited — in accordance with privacy guidelines — and used only for investigating traffic offenses. The government said it will start authorising equipment suppliers in October. The Transport and Logistics Bureau said the reforms are aimed at improving the experience of taxi passengers, especially tourists, who have often expressed frustration over the cash-only policies of many taxis. The amendment bill will be tabled at the Legislative Council (LegCo) on July 23 for negative vetting. 'I think the authorities are heading in the right direction,' said part-time taxi driver Chan, who declined to give his full name. The driver, who began working in the industry in 2023, said that in-car surveillance aligns with the wishes of many drivers seeking to improve the sector's reputation, and will help the sector gain the public's trust, respect, and ultimately more business. 'The recordings also protect us drivers,' he added, explaining how video evidence can prevent false accusations, such as of fare overcharging. Chan described himself as an e-payments supporter, citing their convenience and hygiene advantages. His preferred methods include Octopus, the Faster Payment System (FPS) for instant bank transfers, and QR code scanning. Payment preferences vary significantly across passenger groups, he said. While about half of local riders still favor cash, mainland tourists typically request WeChat Pay or Alipay. International visitors, meanwhile, often opt to pay on ride-hailing apps like Uber to bypass language barriers. However, the 39-year-old explained that many older drivers still cling to cash payments because they lack digital skills, or may need immediate access to income or have tax concerns. According to Transport Department data from 2022, about 60 percent of the city's taxi drivers were aged 60 or older. To help drivers adapt, the authorities have pledged to work with e-payment providers to organise training workshops. Chan said that such training must be practical, and proposed giving digital payment instructions at gas stations while drivers queue to refuel, as well as at locations where drivers hand over their shifts. 'The training needs to fit around drivers' schedules,' he said. Wang Lin, who relocated to Hong Kong for work in 2022, welcomes the new e-payment mandate but questions whether surveillance cameras alone can significantly improve the quality of service. After years in the mainland's cashless economy, Wang was shocked to find Hong Kong taxis routinely reject digital payments. She recalls one time when she had to borrow cash from the concierge of the building she lives in after her taxi driver refused e-payment. 'Now I never leave home without cash,' she said. The commuter, who daily takes a taxi from Wan Chai to Kwun Tong to save time, explained that after years of making small talk with drivers, she believes there is a deeper issue: Many older drivers are under severe financial pressure, which she believes fuels their impatience with passengers. 'These are systemic problems that cameras can't fix overnight,' Wang said, adding that the small change they retain from cash payments often constitutes a critical part of struggling drivers' income. She said that e-payment solutions should not burden drivers with additional costs, such as excessive transaction fees charged by digital platforms, or with operating difficulties. - China Daily/ANN
HKFP
16-07-2025
- Automotive
- HKFP
Hong Kong gov't proposes cap on e-hailing cars, but no limit specified yet
The Hong Kong government has proposed capping the number of e-hailing cars allowed in the city, though the regulatory framework proposal gives no details of the specific limit. The Transport and Logistics Bureau on Tuesday unveiled its proposal to regulate online ride-hailing services, after Chief Executive John Lee said the government must not delay tackling issues stemming from such services. According to the proposal submitted to the Legislative Council's Panel on Transport, the government suggests issuing licences to ride-hailing platforms that would be valid for five years and renewable based on the platform's service performance. The company operating the platform must be locally registered and have offices and staff based in the city. The government proposes that each platform meet a set of criteria, including operational experience, capital investment, and proof of financial capability. Companies would be required to pay an application fee and an annual licence fee. The government also proposed additional charges for each e-hailing ride, with the revenue used to support the taxi industry in improving service quality. The government estimated that 'a few' online ride-hailing companies would meet the application criteria. In addition to the platform licence, each vehicle and driver would be required to obtain separate licences to provide ride-hailing services. The vehicle permit would be valid for one year, on the condition that the car is no more than seven years old. The vehicle must also pass an annual inspection, and the permit holder must purchase third-party liability insurance. The government believes there is a need to impose a limit on the total number of vehicles providing online ride-hailing services. The proposal does not specify the cap. However, authorities said a supplementary legal amendment would be submitted in the first half of 2026 to outline the arrangement. 'When making decisions, we will take into account and balance multiple factors, including passengers' travel demand and experience, the capacity of the road network, the ecosystem of the public transport system, and the overall health and sustainable development of the personalised point-to-point transport services sector,' read the government's proposal, which is only available in Chinese. 'Improve competitiveness' Under the proposed framework, platforms would be allowed to set their own prices, but passengers must be informed of the fare arrangement prior to the ride. Drivers – who must be at least 21 years old and have held a private car licence for at least one year – may register with and accept orders from multiple platforms. The government proposed allowing ride-hailing platforms to include taxi-hailing services, saying this could 'improve the competitiveness' of taxi drivers and provide more options for passengers. Taxi licence holders would not be required to obtain a separate permit to offer ride-hailing services, the government suggests. The proposed framework is set to be discussed at the Panel on Transport meeting on Friday. Ride-hailing apps currently operate in a grey area in the city, which requires vehicles offering hailing services to have a hire car permit. Private vehicle owners who sign up with online platforms to provide hailing services without a permit could be punished by up to six months in jail and a HK$10,000 fine for the first offence. Ride-hailing services such as Uber have seen rising popularity amid long-standing dissatisfaction with taxi service standards. Last month, Uber, which has operated in Hong Kong since 2014, revealed that it had more than 30,000 drivers in Hong Kong in the past year. Andrew Byrne, the company's global head of public policy, warned that a cap on the number of drivers and vehicles allowed on the platform could result in longer wait times and higher prices, while limiting ways for people in Hong Kong to earn an income.
HKFP
15-07-2025
- Automotive
- HKFP
‘Cannot drag our feet': Hong Kong gov't moves to regulate ride-hailing services
The Hong Kong government will submit a legislative proposal on regulating ride-hailing platforms, the city's leader has announced, saying it cannot delay tackling issues stemming from such services. The Transport and Logistics Bureau will submit a paper to the Panel on Transport of the Legislative Council on Tuesday to outline a framework for regulating online car-hailing services in the city, Chief Executive John Lee said at a weekly press briefing on the same day. Without naming any specific operator, the Hong Kong leader said different issues arose after a ride-hailing platform began operating in the city 11 years ago. The problems, which Lee described as 'complex' and 'involving a lot of parties and interests,' included the protection and safety of passengers and the 'coexistence' of ride-hailing services and taxis. 'I agree that this issue is complex, but we must not continue to drag our feet. The government must come up with a solution,' Lee said in Cantonese. According to Lee, the proposed regulatory framework would cover operational standards for ride-hailing platforms, requirements on the vehicles used, drivers' qualifications and insurance requirements to ensure the safety of passengers. The framework would also spell out a 'new environment' for taxis to operate in, he said. 'Online-hailed cars should co-exist with taxis to provide quality point-to-point personalised transport services for the public,' Lee said. When asked about the number of licences the government plans to issue to cars providing e-hailing services, Lee said the authorities have to 'create room' that is 'favourable' for the operation of taxis. He added that the legislative proposal would first tackle issues on which the public had a consensus before resolving other technical matters. Grey area Ride-hailing apps currently operate in a grey area in the city, which requires vehicles offering hailing services to have a hire car permit. Private vehicle owners who sign up with online platforms to provide hailing services without a permit could be punished by up to six months in jail and a HK$10,000 fine for the first offence. Ride-hailing services such as Uber have seen rising popularity amid long-standing dissatisfaction with taxi service standards. In February, a taxi union announced a plan to stage a five-day strike to put pressure on the authorities to commit to a crackdown on ride-hailing services. The plan was called off a week later after the chief executive warned that 'drastic action' would not receive public support. Last month, Uber, which has operated in Hong Kong since 2014, revealed it had more than 30,000 drivers in Hong Kong in the past year. Andrew Byrne, the company's global head of public policy, expressed concerns last month over a potential driver quota under the regulatory framework, which he said could ' make ridesharing less reliable.' A cap on the number of drivers and vehicles allowed on the platform could result in longer wait times and higher prices, while limiting ways for people in Hong Kong to earn an income, he warned.
The Star
14-07-2025
- Business
- The Star
Will speeding up the rail line for Northern Metropolis entice Hong Kong developers?
The Hong Kong government's plan to speed up the construction of the rail backbone of the Northern Metropolis near the border with mainland China will make the megaproject more appealing to developers, but whether they will be persuaded to invest is another matter, experts have said. Amid a depressed property market, developers have voiced concerns over their profit margins if they commit to building in the hub, which Hong Kong and Macau Affairs Office Director Xia Baolong urged the city to complete as soon as possible. Sources told the Post that a key topic for Xia during his recent visits to Hong Kong was the Northern Metropolis and its potential as the city's next game changer for its economic future. On Tuesday, the Transport and Logistics Bureau announced a first-phase deal with the MTR Corporation that would lower the cost of construction and bring forward the completion of a cross-border spur line by at least two years to 2034. The deal covers the creation of the Northern Link spur line, which will start at Chau Tau station and end at Shenzhen's Huanggang Port station, allowing commuters to cross the border with greater ease. Financing for the Northern Link will be boosted by the government granting the rail giant 10 development sites and deducting HK$39.05 billion (US$4.97 billion) from its land premiums. It also opens the door for the company to work with mainland partners. Professor Lau Siu-kai, a consultant with Beijing's semi-official think tank, the Chinese Association of Hong Kong and Macau Studies, said the government was seeking to show its determination to expedite the project while at the same time incentivising private companies to invest in the development. 'Last year, Director Xia began urging Hong Kong to accelerate development, especially by having developers participate. He even led a group to Shenzhen to discuss this. To some extent, I believe the push to speed up railway construction is partly a response to the central government's particular concerns,' Lau said. He said he expected that the acceleration of the development of the Northern Metropolis would be a key theme of the next five-year plan covering national development strategies. 'If this is indeed the case, Hong Kong will need to drastically pick up the pace, cutting back on excessive procedures, fast-tracking the approval process for projects and even reducing unnecessary bureaucratic steps and rules,' Lau said. Formed around the San Tin Technopole and the neighbouring Hong Kong-Shenzhen Innovation and Technology Park in the Loop, the Northern Metropolis is viewed as critical for Hong Kong's future economic growth, with its potential to create about 650,000 jobs. About 2.5 million people are expected to live in the new area. In January, the Hong Kong Real Property Federation and the China Real Estate Chamber of Commerce urged the government to expedite infrastructure construction to enhance the development potential of sites and reduce uncertainties for investors. 'The early completion of transport infrastructure will benefit the relocation of residents, businesses, and academic institutions, leading to thriving human traffic that will boost overall economic development and increase developers' willingness to invest,' Louis Loong Hon-biu, a lawmaker and also the secretary general of the Real Estate Developers Association, said. Asked if the acceleration of infrastructure development could prod investors into action, Loong said the completion times of the different infrastructure projects would influence their plans. He also expressed hope that the government would communicate effectively with companies to introduce details of mainland standards to be used in the construction of the spur line, so players could prepare accordingly. Construction of the spur line is due to begin in 2027 and end in 2034, the same year the Northern Main Line is scheduled to go into operation. Kathy Lee, head of research at commercial property agency Colliers, said the earlier completion date and the HK$39.05 billion (US$4.97 billion) in financing the government has offered to the MTR Corporation could boost market interest in the Northern Metropolis. But she noted it would still take nine years to complete the rail lines, while facilities would be ready to be occupied in the coming few years. 'The major concern of developers is about the occupancy rate, whether businesses are interested in setting foot in the project and need that much floor space,' Lee said. 'The market still has questions about that.' She suggested the government could help line up developers and innovation and technology companies hoping to set up offices in the city to tackle developers' concerns. But Vera Yuen Wing-han, an economics lecturer at the University of Hong Kong, said the government's new time frame might not incentivise developers to buy plots due to their current financial position. 'Many are grappling with substantial debt, which limits their capacity to bid on new land due to their cash flow,' she said. Last November, 85 business heavyweights pledged to support and participate in Hong Kong's Northern Metropolis megaproject. Yuen added that a critical factor influencing developer sentiment was the Northern Metropolis' proximity to the mainland and the ongoing integration between the two jurisdictions. Some fear investing heavily in the new development could lead to property values being benchmarked against mainland prices, which are generally lower. - SOUTH CHINA MORNING POST
