A majority of lawmakers at a Legco transport panel meeting on Friday backed the government’s plan to license ride-hailing operators, although some called for changes.

The government wants to introduce a licensing system for ride-hailing platforms, their drivers and the vehicles used.

Transport sector lawmaker Frankie Yick said taxi drivers are concerned about their rivals undercutting them by providing customers with steep discounts.

"Taxi regulations prohibit fare-cutting to attract customers, so discounts like 20 percent off are actually illegal. However, if platforms can offer cheaper services, it explains why the taxi industry is so agitated," he said.

"Some platforms charge HK$20 for a ride that should cost HK$80, leaving taxi drivers feeling helpless."

Gary Zhang said the proposed age limit for vehicles is too lenient.

"In other cities with ride-hailing regulations, such as Shanghai, Shenzhen and London, the typical age limit is around three to five years. Our initial regulation of seven years could potentially allow vehicles to be on the road for over a decade, which I think is too lenient for Hong Kong's situation," he said.

Chan Pui-leung, meanwhile, noted that while the government has proposed a limit on the number of vehicles that can be given a licence for ride-hailing services, it is not suggesting a limit on the number of drivers that can use them.

He also expressed concern that some vehicle owners might secure a licence under the quota system but then not offer any services. Chan suggested a vehicle owner should lose their ride-hailing licence if they don't provide a minimum number of journeys.

Transport Secretary Mable Chan said it is hoped the licensing requirements will eliminate market uncertainty and allow the taxi sector and ride-hailing services to coexist and develop smoothly.

"The government's proposed framework for regulating online ride-hailing services puts the interests of citizens first. Our goal is to make citizens safer when travelling, with more choices and better point-to-point transportation services," she said.