Uber and Didi Prepare Ride-Hailing License Applications in Hong Kong

Ride-hailing giants Uber and Didi have announced their intention to apply for licences under Hong Kong's new regulatory scheme, which opened for submissions on Friday. The move follows the passage of legislation last October aimed at formalising an industry that has operated in a legal grey area since Uber's 2014 entry into the market.

In a statement released Friday, Uber expressed readiness to apply for a ride-hailing platform licence, stating: "We are preparing our application for a ride-hailing platform license with a firm commitment to delivering a safe, high-quality experience for passengers and strong support for driver-partners and the Hong Kong Government." The company confirmed it is compiling the necessary documentation to meet the government's requirements.

Hong Kong's government initiated the licence application process on Friday morning, marking a significant step toward full implementation of the regulatory framework passed last year. Under the new regime, all ride-hailing platforms must obtain a licence to operate, while individual drivers must secure a separate licence—scheduled for issuance starting November. The written examination for driver licences opened earlier this month.

To qualify for a platform licence, companies must maintain a permanent office in Hong Kong and demonstrate prior experience operating in a city with a comparably large population. Applicants must also provide proof of financial stability. In addition to Uber, mainland-based Didi has also indicated its intention to apply. A spokesperson for Didi told local media that the government's clear criteria would strengthen the regulatory framework and confirmed the company would submit its application "as soon as possible."

The emergence of ride-hailing services has disrupted Hong Kong's traditional taxi industry, which has long argued that unregulated competition has negatively impacted cab drivers' livelihoods. Taxi operators have advocated for government intervention, and the new licensing system represents the government's response to these concerns.

The regulatory regime will take full effect in August 2024. Without a licence, ride-hailing platforms face penalties of up to HK$1 million in fines and imprisonment for operators. Drivers found operating without a licence will be disqualified from driving for one to three years and fined up to HK$10,000 for a first offence—stricter penalties than the previous maximum fine of HK$5,000 with no disqualification.

Hong Kong Free Press journalist Hillary Leung covers local politics and social issues, including the recent regulatory changes impacting ride-hailing services.