Chinese, Southeast Asian ride-hailing firms eye Hong Kong amid licensing roll-out

Chinese and Southeast Asian ride-hailing firms are showing interest in entering Hong Kong's market prior to the official launch of licensed operations, according to the transport secretary. Secretary for Transport and Logistics, Mable Chan, disclosed that over 7,500 individuals have applied for a new combined taxi and ride-hailing vehicle written test, describing the figure as a "very good and positive" indication.

She stated on a television program that the government hopes for increased competition and diversity in the sector to offer more options for residents and future ride-hailing drivers.

Hong Kong officially recognized ride-hailing services earlier this year, mandating platforms, vehicles, and drivers to secure separate licenses or permits. While the new regulatory framework came into effect on August 3, the first licensed services are not projected to commence until later in the year. Chan did not reveal the names or quantity of the overseas operators that have contacted the city, but noted that they may be familiar to Hongkongers from their visits to mainland China or Southeast Asia.

Currently, Uber operates in Hong Kong, while Chinese platforms Didi and Amap (owned by Alibaba Group Holding, which also owns the South China Morning Post) provide local booking services. Geely-backed CaoCao Mobility, China's second-largest ride-hailing operator, recently signed a strategic partnership with Octopus to pursue licensed services in the city.

Southeast Asia's largest ride-hailing platform, Grab, which serves over 900 cities across eight countries, is also active in Hong Kong.

The government aims to solicit applications for platform licenses from interested companies within the coming months. As part of the new regulatory regime, a combined taxi and ride-hailing driver written test was introduced, alongside the existing taxi driver exam, creating a unified assessment for both services. Candidates who pass can undergo the mandatory pre-service course before applying for necessary permits.

The first group of examinees for the combined written test will take the exam from mid-September, with applications already open since August 3. Existing taxi drivers can apply directly for a ride-hailing permit without taking the test. The Transport Department plans to conduct a baseline survey before the end of the third quarter to analyze residents' travel patterns and gauge passenger demand.

Licensed platforms will subsequently be required to submit operational data to a government monitoring system, enabling authorities to assess supply and demand dynamically. The platforms will also be asked to explain how they intend to maintain sufficient capacity, potentially by appealing to taxis to participate in bookings through their applications. Additionally, Chan suggested that licence renewal requirements could be structured to incentivize drivers to maintain regular work schedules.