A ride-hailing platform, those in the taxi trade and lawmakers have generally welcomed a new regulatory framework proposed by the government requiring licences for ride-hailing operators.

In a paper submitted to the Legislative Council, the government proposed that ride-hailing platforms and drivers apply for licences or permits that would be renewable every five years.

Uber said in a statement it welcomed the regulatory framework.

"We are encouraged to see safety and service standards – such as mandatory insurance, driver examinations, and regular vehicle inspections – placed at the centre of the proposed regime," Uber said.

But it also expressed concern about a proposed cap on the number of vehicles. "Artificial limits risk increasing wait times, raising prices for riders, and restricting earning opportunities for drivers."

A taxi driver surnamed Yung told RTHK that healthy competition is good, as long as it's fair.

"It’s not acceptable for ride-hailing platforms to operate in a grey area and take advantage of us. It’s that simple. I have to obtain a business registration document, so the platforms should have to as well."

Federation of Trade Unions lawmaker Michael Luk said he supports injecting competition into the taxi sector, noting it would benefit passengers as more choices become available.

He also said further research is required to determine whether the number of ride-hailing vehicles should be capped.

"In terms of the exact number of platform vehicles, there's a need for an extensive and scientific market survey. This is not a question of who is replacing whom. I think taxis and ride-hailing cars can co-exist," he said.

The Transport Advisory Committee (TAC) said the framework would create a healthy and sustainable competitive environment for the personalised point-to-point transport market.

"This will help safeguard passengers' safety and rights and meet the travel needs of the public. The TAC expects that, after the relevant regulation has been implemented, taxis will continue to maintain their current advantages and co-exist with online hailing hire cars, thereby meeting passengers' diversified transport demands," chairman Stephen Cheung said in a statement.

Ryan Ip, vice president of Our Hong Kong Foundation and executive director of its Public Policy Institute, said the framework clarifies responsibilities for platforms, drivers and the taxi industry.

He suggested that ride-hailing platforms disclose data on supply and demand, and the Transport Department could review the data as well as road conditions monthly to adjust the number of ride-hailing licences.