Experts urge variable quota for Hong Kong ride-hailing service

A fixed cap may be a very straight line-approach for a very tech-driven operation.

Hong Kong should adopt a “variable quota” system for online ride-hailing vehicles rather than a fixed limit, transport experts said, warning that rigid caps could hinder services and reduce mobility.

Ticky Chan, an officer at the Public Transport Think Tank of Hong Kong, expressed concern over potential restrictions on ride-hailing numbers.

“Such restrictions would not only affect over 30,000 drivers but also significantly impact passenger services, such as longer waiting times and greater difficulty in booking a ride,” he told Hong Kong Business via Zoom.

Alok Jain, CEO and managing director at Trans-Consult Ltd., said a vehicle cap is “a very straight-line approach for a very tech-driven operation.” A flexible quota system that allows more vehicles during peak periods and fewer during off-peak hours is more appropriate, he added, noting that “supply should adjust rather than remain constant.”

The government has not disclosed what the vehicle quota will be. 

A PTTTHK survey published on 3 June found that six of 10 Hong Kong citizens see no need for a cap, and if imposed, nine of 10 want it set no lower than the number of ride-hailing vehicles.

The vehicle quota is part of a broader plan to regulate online ride-hailing and ensure fair competition with heavily regulated taxis.

Chan said the cap is unlikely to boost taxi ridership. “Instead, it could lead citizens to drive themselves or use other transport modes, adding to road congestion. In an era of technological advancement, why suppress this service and hinder citizens’ mobility?”

Data from the Legislative Council Secretariat showed daily taxi trips have fallen 29.4% in the past decade to 682,000 in 2024, while taxis’ share of public transport patronage declined to 5.8% from 7.7%. The reduction was partly due to competition from ride-hailing and other personalized point-to-point services.

Hong Kong has about 18,000 taxis and four ride-hailing platforms—Uber Technologies, DiDi Global, Tada Mobility, and Amap (AutoNavi). The number of vehicles deployed by these platforms has not been made public.

While Chan opposes a vehicle cap, he supports other regulatory measures, including a proposal requiring ride-hailing operators to obtain licenses for each vehicle.

Jain noted that while taxi licenses trade at about $2 million each, ride-hailing permits would likely be priced lower. Other proposed regulations include mandatory vehicle checks, insurance coverage, and driver training comparable to taxi requirements.

“These are additional costs for people in the ride-hailing trade, which has so far operated with few requirements,” he said in a separate Zoom interview. “Right now, it’s completely free for all—a very cowboy-type operation.”

He added that formalizing the sector would make it transparent, data-driven, and fair, reducing exploitation and ensuring equitable operations.

Regulating ride-hailing could also reduce private car use by encouraging people to use these services for first mile–last mile connectivity rather than entire journeys, Jain said. 

“The hope is that more people will use ride-hailing to reach railway or bus stations, and then take trains or buses for longer-distance travel.”