Can taxis and ride-hailing services co-exist in Hong Kong under new rules?
Government also likely to grab slice of lucrative sector while reining in ride-hailing operators, analysts say
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.
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.