Ride-hailing firm Uber Technologies Inc. has issued a warning to its users and drivers in Hong Kong about possible impacts of upcoming government regulations that may impose new limits on its operations, including insurance restrictions.
The San Francisco-based company recently emailed 30,000 drivers and 1.5 million users in Hong Kong, cautioning that proposed rules could lead to a cap on the number of drivers or vehicles allowed on the platform. Uber stated that these restrictions could reduce earnings for drivers and result in longer wait times and higher cancellation rates.
The Hong Kong government is expected to announce a regulatory framework for ride-hailing services in the coming months. The move follows a 2023 statement outlining intentions to regulate the industry, including the introduction of platform licensing requirements and stricter penalties for violations.
No official response has been issued by the Hong Kong government regarding Uber’s concerns.
Uber, which began operations in the city in 2014, has become a widely used transport alternative. In 2021, it acquired the HKTaxi app, integrating local taxi services with its platform. It currently operates both traditional ride-hailing and Uber Taxi, which allows users to book taxis using its app.
The upcoming regulations have sparked tension between Uber and Hong Kong’s taxi industry. Taxi operators have long voiced opposition to the ride-hailing company, claiming that its presence causes daily financial losses and undermines fair competition. In 2023, local taxi drivers threatened to strike over the government's inaction regarding ride-hailing regulations.
In March, Uber submitted regulatory proposals to the Hong Kong government. These included licensing ride-hailing platforms, requiring background checks for drivers, and implementing safety protocols and insurance standards.
People in the city value ride-sharing, noted Estyn Chung, Uber’s general manager for Hong Kong. “We hope the government is considering a regulatory framework that prioritizes safety, meets the needs of riders and drivers, and enables ride-sharing and taxis to grow side by side.”
Internationally, Uber has taken similar approaches to raise awareness among users and drivers in response to proposed regulatory changes. In the United States, both Uber and rival Lyft Inc. have used app notifications and email campaigns to address legislation in different regions.
Meanwhile, Chinese competitor Didi Global Inc. is reportedly recruiting drivers in Hong Kong. The move signals its intention to expand beyond mainland China, potentially intensifying market competition.
What are your thoughts on how these new regulations might change the ride-hailing landscape in Hong Kong? Share your insights below.
