Ride-hailing policies take effect Monday; undersupply concerns linger

Most regulations under the ride-hailing ordinance will take effect next Monday.

The government will invite ride-hailing platforms to apply for the licenses as early as August.

Authorities will also step up enforcement measures targeting unlicensed ride-hailing services -- but that's three months before drivers could register for licenses at the end of November.

After years of deliberation, the Road Traffic (Amendment) (Ride-hailing Service) Ordinance is finally shifting into gear next Monday as most of its legal provisions will take effect on that day.

The Transport and Logistics Bureau will kick-start the licensing process, inviting interested platform operators to apply for ride-hailing licenses.

At the same time, the Transport Department will accept applications for a new written examination for both taxis and ride-hailing drivers.

The first batch of candidates is expected to sit the exam in mid-September this year.

Starting next Monday, authorities will also step up enforcement against illegal paid passenger transport service.

Convicted drivers will have their driving licenses suspended for at least one year with disqualification for most serious cases extended to up to three years.

But as the city switches lanes towards a more regulated ride-hailing market, questions remain over whether there will be enough legal vehicles on the road.

Currently, Hong Kong has around 18,000 licensed taxis, with roughly 1,000 privately-owned cars legally authorised to provide hire services.

Before the new licensing regime reaches full speed, fewer than 20,000 legally compliant vehicles will be available to provide point-to-point services.

As supply might fail to keep pace with demand, will commuters face longer waiting times?

This woman says she has a friend who used to be an Uber driver but because of the legal limbo, he stopped the service.

This Malaysian tourist says it's definitely easier for travellers to hail a ride via Uber so it might spell more trouble for them during the transition period.

Roundtable lawmaker Mark Chong anticipates the supply of ride-hailing services will dip to around 40% of the current level at its worst over the coming three months.

But the actual situation depends on the enforcement intensity by authorities.