Hong Kong lawmakers pass bill to regulate ride-hailing services like Uber

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HONG KONG– HONG KONG (AP) — Hong Kong lawmakers passed a bill Wednesday to regulate online ride-hailing services, requiring platforms like Uber, as well as their vehicles and drivers, to be licensed, after years of backlash from the city’s taxi industry.

The first licensed platforms are expected to start operating no earlier than the end of 2026, officials said.

In granting a license, the Hong Kong Transport Commissioner may take into account the company’s experience, financial capacity and planned investments in the region. Approved companies will have to maintain “appropriate and efficient” services and ensure all vehicles and drivers on their platforms hold valid licenses, under the new rules.

Drivers must be at least 21 years old, have held a private car driving license for at least one year and have no serious traffic convictions within five years. They must also pass a test and complete a prerequisite course.

The bill marks an important step in the development of ride-hailing services in Hong Kong, which currently prohibits drivers of private vehicles from providing paid services to customers without a license.

Uber Hong Kong welcomed the voting results. “This decision marks an important step in integrating carpooling into the city’s transportation system and ensuring that riders and drivers benefit from clear rules,” the statement said.

Police have previously arrested Uber drivers on suspicion of driving without a license and in 2018 more than two dozen drivers were fined.

Some taxi companies have long resisted online platforms like Uber, seeing them as a threat to their business.

Uber, which began operating in Hong Kong in 2014, has faced multiple legal and regulatory challenges during its overseas expansion but remains popular in the Asian financial hub, where many residents are frustrated by what they describe as poor taxi services.

Officials have proposed capping the number of vehicles offering ride-hailing services under the new rules, which will be spelled out in subsidiary legislation next year. If this legislation passes, they will invite applications for licenses.

Uber Hong Kong said it looked forward to “constructive discussions” on vehicle quota mechanisms.

Anyone operating a ride-hailing platform and providing services without a license will be fined up to 1 million Hong Kong dollars (about $128,600) and imprisoned for up to one year, according to the bill.

A platform that hires cars or drivers without valid licenses to serve passengers could be punished with up to six months’ imprisonment and a fine of 10,000 Hong Kong dollars ($1,286) per offense upon a first conviction. If convicted later, the maximum prison term would double, in addition to a higher fine.

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