New taxi fleets set to hit the streets of Hong Kong could be suspended from doing business if their service quality isn't up to scratch, the government said on Wednesday.

The Transport Department is currently vetting 15 applications for taxi fleet licences, with up to five successful bidders expected to be announced in July.

Responding to questions from lawmaker Edward Leung, Acting Transport Secretary Liu Chun-san said taxi fleet operators will need to take part in a mid-term appraisal and their performance would be taken into account should they wish to renew their licences.

The transport commissioner would be able to initiate an inquiry should a fleet fail to meet the required standards and a number of sanctions would be available, such as a licence suspension or withdrawing certain taxis from the fleet, Liu said in a written reply.

Last year saw a 75 percent surge in complaints against taxi drivers.

More than one-third of the 1,006 cases filed to the authorities were related to drivers refusing hire, while another 340 cabbies were accused of overcharging.

But authorities cautioned that the jump in complaints came against a low base of comparison in 2022, when Hong Kong was still curtailed by Covid restrictions.