Hong Kong authorities should issue about 20,500 licences in the first phase of regulating ride-hailing platforms, lawmakers and experts have said, arguing that the city needs at least 15,000 active cars daily to meet existing demand and avoid worsening transport shortages.

The proposal came as several lawmakers told the South China Morning Post, on condition of anonymity, that the government had recently consulted them on a regulatory framework for ride-hailing services but had not presented any concrete plan.

The SCMP learned that the Transport and Logistics Bureau could submit a document outlining its proposal to the Legislative Council as early as Monday.

The bureau is expected to imminently roll out a legal framework to govern operators such as Uber, Tada, Amap and Didi Chuxing, which currently operate without regulation. Amap is operated by Alibaba Group Holding, which also owns the SCMP.

“The officials did not reveal the exact number of licences they will issue, but indicated it would not be as high as the ride-hailing platforms proposed, nor as low as the taxi industry demanded,” one lawmaker said. “They appeared to prefer taking the middle road.”

Another legislator said the government had discussed insurance requirements for ride-hailing vehicles and expected the industry not to raise fares significantly.