Hong Kong's new ride-hailing rules demand 100,000 daily orders and major capital reserves

Hong Kong's Transport Department has set the bar high for ride-hailing platforms, requiring applicants to prove they have handled more than 100,000 daily orders in at least two cities and provided legal services in a metropolis with over 7.5 million residents.

The government opened licence applications under the new regulatory scheme on Friday, laying out strict eligibility criteria that include operational experience, technology standards and substantial capital requirements.

Technology and safety requirements

Platforms must deploy facial recognition and other due diligence technologies to verify that vehicles are driven by their registered owners holding valid permits. The department will also require applicants to demonstrate booking management technology capabilities.

"By introducing the regulatory regime for ride-hailing services, we aim to require platforms, vehicles, and drivers providing these services to obtain relevant licences and permits, providing members of the public with safer and compliant choices for point-to-point transport," a department spokesman said.

Financial and corporate criteria

Applicants must be companies registered in Hong Kong and maintain permanent executive personnel and an office in the city. The financial threshold is steep: operators need capital of at least HK$50 million (US$6.4 million), with a minimum HK$30 million in bank deposits and a HK$30 million credit line.

Companies will also have to submit audited financial reports covering the past three years.

The Transport Department said the requirements were designed "to ensure that ride-hailing platforms possess the operational capability to provide platform services".

Data obligations

Under the new scheme, operators must submit operational data for each trip to the government according to specified frequency, method and format, and are required to store such data within Hong Kong.

Source: South China Morning Post