The government announced on Tuesday it proposed to issue 10,000 ride-hailing vehicle permits in the first phase, and that interested parties can apply for them in the third quarter of this year.

In a paper submitted to the Legislative Council, the government said it believes that under the driver-vehicle pairing arrangement, most drivers will continue to operate in a part-time mode, similar to the current situation.

It also expects that due to the rise in costs – such as for permit fees and insurance, as well as the rise in service demand under the regulation – some drivers will be working longer hours.

If each ride-hailing driver works an average of six hours and manages to complete two trips per hour, they can carry out 12 trips a day on average.

The government said that this means that 10,000 ride-hailing vehicles can offer about 120,000 trips per day, which is comparable to the current demand for such services.

It believes a cap at 10,000 is a prudent, stable and an appropriate approach. It explained this would not change the current passenger experience, and would balance considerations regarding road resources and the public transport ecosystem, allowing the ride-hailing regulatory regime to be implemented smoothly.

The government also proposed to charge an annual service licence fee of HK$1.2 million.

As for a vehicle permit that will remain valid for no more than 12 months, it plans to charge HK$1,560, and another HK$410 for a five-year driving permit.

It expects to issue the permits gradually, starting from the end of November at the earliest so that licensed platforms can kick-start preparatory work.

By August 22 next year, all platforms have to be licensed.

Authorities say they would make adjustments to the quota if necessary.

The government will table four pieces of subsidiary legislation relating to the regulation of ride-hailing services before the Legislative Council on Wednesday.


Edited by Aaron Tam