Lawmakers approved a bill on Wednesday to introduce a regulatory framework for ride-hailing services in Hong Kong.

Secretary for Transport Mable Chan welcomed the passage, saying officials will iron out issues such as the number of licenses by way of subsidiary legislation. She added that the plan is to have the platforms up and running in around a year's time.

Under the law, future platforms, drivers and vehicles will all have to be licensed - and only cars younger than 12 years will be allowed.

To guard against illegal workers becoming drivers, only those who hold permanent Hong Kong identity cards and aged 21 or above can apply for a ride-hailing driver's license.

Chan said pricing will be left to the market to decide, noting that officials reserve the right to tackle situations like cutthroat discounts and involution, or disorderly price competition.

"What's important is that before the start of the trip, passengers are aware of the fares to be charged," she said.

"We will, however, reserve price setting power, so that if necessary, we can regulate the fare arrangements."

Before the bill was passed, several legislators expressed concern that the taxi trade may be adversely affected by the new arrangement. Transport sector representative Frankie Yick, for example, said taxi fares are regulated by law and have no room for ad hoc adjustments.

The Liberal Party lawmaker noted a few months ago, a new platform entering Hong Kong only charged HK$20 for a HK$80 trip.

"Although the law states that the Commissioner for Transport can intervene when there's a market imbalance, the trade is concerned the government won't take action because of opposition from the public," he said.

"People only want cheaper fares and generally don't mind whether the trade can survive."

Finance sector lawmaker Ronick Chan, meanwhile, said officials should not shy away from giving out more permits, as ride-hailing drivers often spend less time on the roads than taxi drivers.

"Taxis are always around on the street, but for ride-hailing vehicles, some take orders throughout the day, others take orders only at specific times or on specific days," he said.

"The number of permits for ride-hailing vehicles will not be the same as ride-hailing vehicles actually hitting the road. This calls for flexibility in the government's approach so the ride-hailing platforms can deploy vehicles accordingly."