Ride-hailing vehicle cap could cut active drivers by over 50%: Uber

Over 30,000 drivers earned through ride-hailing in Hong Kong in the past year.

A 15,000-cap on ride-hailing vehicle permits could cut active drivers by more than half, doubling passenger wait times and raising fares by as much as 70%, Uber warned. 

The response comes after Chief Executive John Lee said the government would limit the number of ride-hailing vehicle permits issued under new regulations for the sector, citing road capacity and public transport usage as key considerations.

A proposed permit cap of between 10,000 and 15,000 vehicles would create a severe supply shock from day one, according to Andrew Byrne, Uber’s Global Head of Public Policy.

Byrne said ride-hailing demand in the city can swing by as much as 66% between peak and off-peak hours in a single day, requiring a flexible pool of drivers to meet demand. 

“A quota set too far below current demand creates a supply shock that no subsequent review can easily undo, and that is the choice in front of Hong Kong today," he added.

Uber said riders could see estimated arrival times exceed 15 minutes during busy commuting periods and late-night trips. Fares for airport journeys and rides from tourist destinations could exceed $430 at certain times.

The company also called for permit allocation rules that prioritise experienced drivers already relying on ride-hailing income, rather than systems based on lotteries or vehicle ownership duration.

Over 30,000 drivers earned through ride-hailing in Hong Kong over the past year.

Whilst Uber welcomed the government’s stated intention to include a quota review mechanism, it stressed that a review mechanism alone cannot fix a quota that is set too low from the start.

The company proposed quarterly reviews guided by objective metrics with automatic adjustments triggered when city-wide averages breach agreed thresholds, particularly during peak hours and in already-strained locations.