12th July 2024 – (Hong Kong) Competition Commission has called for the government to ensure a level playing field for online ride-hailing services, emphasising the need for fair competition with traditional taxis. This statement came after the announcement of plans to regulate the point-to-point transportation sector more tightly.
In a statement released on Friday, the commission highlighted the importance of fostering innovation and providing incentives that could benefit both consumers and drivers within the industry. According to the commission, promoting market competition is essential for continuous business efficiency and innovation, which are key components of Hong Kong’s economic success.
The proposed regulatory framework would involve licensing for online ride-hailing platforms, with stringent measures against unlicensed operations, including the suspension of driving licences for those caught providing illegal services. The government plans to assess passenger demand thoroughly before submitting a formal proposal to the legislature next year.
The issue has sparked a debate among legislators, some of whom accuse the government of bias towards taxis over digital ride-hailing solutions. During a recent briefing to the Legislative Council’s transport panel, concerns were raised about the current cap of 1,500 permits for ride-hailing services, which many argue is insufficient to foster healthy competition.
Transport Minister Lam Sai-hung addressed these concerns, stating that while the government’s priority is the safety and rights of passengers, it also recognises the need to support the transport industry’s overall development.
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