Uber, Didi say preparing to apply for ride-hailing service licence as gov’t invites submissions

Ride-hailing services Uber and Didi have announced they are preparing to apply for licences under a new scheme introduced by the Hong Kong government, aiming to regulate the rapidly expanding industry. The government opened applications for ride-hailing licences on Friday morning, following the passage of a bill in October that established laws to govern the sector under a licensing system.

All ride-hailing platforms must obtain a licence to operate in Hong Kong, and ride-hailing drivers will also need a specific licence, which will be issued from November.

To qualify for a platform licence, companies must have a permanent office in Hong Kong, experience providing services in a city with a comparable large population, and demonstrate financial capacity. Uber, based in the United States, and Didi, based in mainland China, have both indicated their intention to apply for licences. Didi expressed its appreciation for the government's announcement, emphasizing that clear criteria are crucial for the regulatory framework's success and pledged to submit its application as soon as possible.

Ride-hailing platforms have experienced significant growth over the past few years by offering convenient services amid mounting public dissatisfaction with Hong Kong's traditional taxi fleet. Uber entered the local market in 2014, while Didi followed in 2018. However, ride-hailing vehicles had previously operated in a legal gray area without dedicated legislation.

The taxi industry has long accused ride-hailing platforms of negatively impacting cab drivers' livelihoods and has been pushing the government to introduce a mechanism regulating ride-hailing operators.

From next August, when the regulatory regime comes into full effect, ride-hailing platforms that operate without a licence will face a maximum fine of HK$1 million and up to a year in prison. Drivers found guilty of carrying passengers for hire or reward without a permit will be banned from driving for between one and three years and will also face a HK$10,000 fine for a first offence.

Before the new laws, the maximum penalty for such an offence was a HK$5,000 fine for a first-time violation and no driving disqualification.