The Transport and Logistics Bureau also proposed imposing levies on ride-hailing platforms while shoring up support for the taxi trade, according to a paper submitted to the legislature.
“The inherent operational advantages of taxis will not change with the regulation of ride-hailing services, and taxis will continue to be the main provider of personalised, point-to-point transport,” the bureau said.
“We will consider imposing levies on ride-hailing platform operators through legislation, and provide resources to support the taxi trade in improving its service quality and promote the sustainable development of the industry, thereby benefitting the public.”
Platforms will be granted five-year licences, and the Transport Department would conduct an interim assessment to help decide whether they should be renewed.
As part of the licensing requirements, operators would have to be a registered company in Hong Kong with permanent staff members.
They would also be asked to conduct thorough checks on drivers and vehicles, monitor service quality, and establish a complaints mechanism as well as a points system for the drivers, according to the proposal.
“A platform can set its own prices based on market conditions, but it must inform passengers of the fare arrangements before the journey begins. The platform is also not allowed to prevent vehicles or drivers operating under it from registering with other platforms,” the bureau said.
Officials said they expect “several” ride-hailing platforms to meet the threshold.
As for drivers, they must be at least 21 years old and pass a test, among other requirements.
They will be issued permits valid for five years as well.
Permits will also be issued to vehicles, which would be valid for a year and can be renewed for up to five years.
Participating vehicles must not be in use for more than seven years when they apply for a permit, and the owner would need to purchase third-party commercial vehicle insurance.
Officials also said they are mulling a cap on the number of cars allowed to be licensed, saying they must “maintain the hard-earned, efficient public transport system” and make good use of “limited road resources”.
The government aims to table the bill in the third quarter of this year and have the primary law passed during the current Legislative Council term.
The plan is expected to be rolled out in the second half of 2026.