Ride-hailing regulation must keep customers and operators in mind

The Transport and Logistics Bureau says it will finalise the cap and the technical regulatory framework in time to make them law before the Legislative Council’s recess in mid-July. Authorities say they will continue to solicit views from different sectors while taking into account public transport needs, passenger experience and the impact of capacity on road resources and the public transport ecosystem. The views of customers – both taxi users and those who have turned to ride-hailing platforms for service – should weigh equally with those of other stakeholders.

Even at this late stage, the government has rightly adopted a cautious approach to regulation, including reconciling widely divergent views on how many ride-hailing vehicle permits to allow among operators such as Uber, Tada, Amap and Didi Chuxing, which currently operate in a regulatory vacuum. Amap is operated by Alibaba Group Holding, which owns the South China Morning Post.

Hong Kong is not to be compared in size or urban density with other major Chinese cities with ride-hailing services. Authorities need to weigh a number of factors carefully – such as peak-hour demand and the full- and part-time availability of drivers – if reform of the industry is to result in the intended enhancement of services.