The Hong Kong government announced on Tuesday that it will issue 10,000 new vehicle permits specifically for online ride-hailing services, including Uber, in a move that marks the first major expansion of the city’s heavily restricted vehicle quota system in over a decade. The decision, detailed in a government press release, comes as part of a broader policy review aimed at modernizing transportation infrastructure while addressing long-standing congestion and accessibility challenges.
The new permits, which will be allocated through an online application process, are expected to be available by mid-2025, according to officials from the Transport Department. The quota increase—equivalent to roughly 1% of Hong Kong’s total vehicle stock—will be distributed among licensed ride-hailing operators, with priority given to those demonstrating compliance with local labor and safety regulations. Uber, which has operated in Hong Kong since 2016 under a limited permit scheme, confirmed in a statement that it had been consulted by authorities during the policy’s development.
Hong Kong’s vehicle quota system, introduced in 1983 to curb traffic congestion, has long been a contentious issue. The city currently caps the number of new private cars at around 136,000, with permits auctioned annually at prices that often exceed HK$1 million ($129,000). Ride-hailing services, which rely on a separate, smaller pool of permits, have historically faced stricter limitations, forcing operators to rely on a mix of leased vehicles and partnerships with taxi firms. The new permits will allow dedicated ride-hailing vehicles to operate without the need for taxi licenses, a change that industry observers say could lower operational costs and improve service reliability.
Transport Secretary Frank Chan Fan said in a briefing that the expansion was part of a “phased approach” to easing transportation constraints while maintaining environmental and safety standards. “We recognize that ride-hailing plays a crucial role in urban mobility, especially for commuters and tourists,” Chan said. “This adjustment will help meet growing demand without compromising our commitment to reducing emissions.” The government has also committed to reviewing the environmental impact of the new permits, including potential increases in traffic and air pollution, though no detailed assessment has been released.
Critics, including environmental groups and pro-democracy lawmakers, have questioned whether the quota increase will exacerbate congestion rather than alleviate it. The Democratic Party’s lawmaker Fernando Cheung said the move risked “perpetuating a car-centric culture” in a city where public transport remains the dominant mode of travel. “Without concurrent investments in road infrastructure and alternative transit, this could backfire,” Cheung warned. The government has not yet outlined plans for additional road capacity or congestion pricing measures, which have been proposed in previous transport strategy reviews.
Uber’s regional general manager for Greater China, Jason Li, described the permit allocation as a “positive step” toward leveling the playing field for digital mobility services. “This will allow us to expand our fleet and better serve Hong Kong’s diverse transportation needs,” Li said. However, the company has not disclosed how many permits it expects to secure or whether it will adjust pricing in response to the new supply. Competitors like local ride-hailing app Didi Chuxing, which operates under a similar permit framework, have not yet commented on the policy change.
The announcement follows months of internal deliberations, during which the Transport Department consulted with ride-hailing operators, taxi unions, and environmental agencies. A draft proposal circulated in late 2023 suggested a smaller initial increase of 5,000 permits, but feedback from industry stakeholders reportedly pushed for a more substantial allocation. The government has not specified whether additional permits will be considered in future reviews, though officials have indicated that further adjustments may depend on traffic and emissions data collected over the next two years.
Meanwhile, the Hong Kong Taxi Drivers Association has expressed skepticism, arguing that the new permits could undermine the livelihoods of traditional taxi drivers by increasing competition. The association’s chairman, Lee Chun-ying, said in a statement that the government had failed to address concerns about fair market access. “Taxi drivers already operate under strict regulations and high costs—this move could disrupt the balance without proper safeguards,” Lee said. The Transport Department has not yet responded to calls for a formal impact study on taxi industry stability.
As of Wednesday, no additional details had been provided on the application process, eligibility criteria, or the timeline for permit distribution beyond the initial mid-2025 target. The government’s next scheduled transport policy review, set for late 2025, may address broader questions about long-term mobility strategies, including the potential for electric vehicle incentives or expanded public transit corridors.
