Hong Kong’s Legislative Council has taken a decisive step in the city’s evolving transport landscape, passing a bill on October 15, 2025, that will—for the first time—regulate online ride-hailing services like Uber. The new law, hailed by officials as a long-awaited solution to years of controversy, is set to overhaul how platforms, vehicles, and drivers operate in the city, balancing the interests of the public, taxi operators, and tech-driven ride-hailing firms.
The Road Traffic (Amendment) (Ride-Hailing Service) Bill 2025, as it’s officially known, will be gazetted on October 24, 2025, according to a government statement cited by Transport & Logistics Secretary Mable Chan. The bill’s passage marks the end of a legislative battle that’s seen fierce debate between the entrenched taxi industry and the rising popularity of app-based ride-hailing platforms. For years, drivers for services like Uber have operated in a legal gray area, often facing police crackdowns and hefty fines. In 2018 alone, more than two dozen Uber drivers were fined for driving without a permit, Associated Press reported.
“This ordinance represents a crucial step forward in the Government’s legislative work,” Chan said, emphasizing that the law resolves long-standing controversies and strikes a balance between various stakeholders. “By first establishing the fundamental regulatory principles, it lays a solid legal foundation for establishing the technical details in the next stage.”
Under the new framework, ride-hailing platform operators must obtain a license, and every vehicle and driver associated with these services must also be licensed or permitted. The requirements are stringent: drivers must be at least 21 years old, have held a private car driving license for at least one year, and have no serious traffic convictions in the past five years. They are also required to complete a pre-service course and pass a designated test, according to Hong Kong Free Press. Vehicles used for ride-hailing must be no more than 12 years old—a compromise after authorities acknowledged that a stricter seven-year age cap could reduce the supply of available cars.
Importantly, the law prohibits drivers from allowing others to use their vehicles for ride-hailing, a measure designed to prevent the subletting or sale of permits on the open market. This, officials say, is aimed at keeping the system fair and above board.
For those considering flouting the new rules, the penalties are steep. Operating a ride-hailing platform without a license can result in a fine of up to 1 million Hong Kong dollars (about $128,600) and up to one year in jail. Platforms that arrange cars or drivers without valid permits face fines of 10,000 Hong Kong dollars ($1,286) per violation and up to six months imprisonment for a first conviction. Repeat offenders will see penalties double, both in terms of fines and possible jail time. The law also gives police expanded powers to seize vehicles suspected of providing illegal ride-hailing services, a move lawmakers hope will make enforcement more effective.
The first licensed ride-hailing services are expected to start operating in late 2026 at the earliest, pending the passage of subsidiary legislation that will lay out the technical details—including a proposed cap on the number of vehicles allowed to operate. Officials plan to submit this follow-up legislation to the Legislative Council in the first half of next year, with full implementation anticipated by mid-2026. Licensed platforms could begin operations as soon as the fourth quarter of that year, according to statements from the government and Transport & Logistics Secretary Mable Chan.
Uber Hong Kong, which has operated in the city since 2014 and has faced multiple legal and regulatory hurdles, welcomed the new law. “This decision marks a significant milestone in integrating ridesharing into the city’s transport system and ensuring riders and drivers benefit from clear rules,” the company said in a statement. Uber also indicated its willingness to engage in “constructive discussions” regarding the vehicle quota mechanisms that may be introduced as part of the subsidiary legislation.
The taxi industry, meanwhile, has watched the rise of ride-hailing apps with deep concern, arguing that they threaten the livelihoods of traditional cab drivers. Representatives have repeatedly called on the government to limit the number of ride-hailing permits, and their lobbying appears to have had some effect—officials are still weighing the introduction of permit quotas as part of the next legislative phase. Secretary Chan emphasized that ride-hailing and taxi services each have their own strengths and could be “complementary” to one another, rather than strictly competitive. To that end, the government is pushing for improvements in the taxi sector, such as requiring electronic payment options and the installation of in-vehicle cameras, with these measures set to roll out from 2026.
The new law also addresses a longstanding frustration among Hong Kong residents, many of whom have complained about the quality and reliability of traditional taxi services. According to Associated Press, ride-hailing platforms like Uber remain popular in the city, largely due to dissatisfaction with existing options. The move to regulate the sector is seen by some as a chance to modernize Hong Kong’s transportation system, attract a younger cohort of drivers, and offer more diverse travel options for residents.
In granting licenses, the transport commissioner will be able to consider a firm’s experience, financial capacity, and proposed investments in the region. Licensed companies will be required to maintain “proper and efficient” services, ensuring that vehicles and drivers meet all legal and safety standards. The law’s supporters say this will create a level playing field and promote higher standards across the board.
Notably, the bill was the final piece of legislation approved by the current Legislative Council term before it adjourns next week—a symbolic end to a contentious chapter in Hong Kong’s transportation saga. As the city looks ahead to a new era of regulated ride-hailing, all eyes will be on how these changes play out in practice, and whether they can deliver on promises of fairness, safety, and improved service for Hong Kong’s millions of daily commuters.
The ordinance will be gazetted on October 24, 2025, and the next phase of legislative work is set to unfold in the months ahead. With the groundwork now laid, Hong Kong stands at the threshold of a new chapter in urban mobility—one where innovation and tradition will have to find a way to coexist.
