Over the past decade or so, ride-hailing apps which allow people in Hong Kong to call private cars as a means of point-to-point transport have raised issues concerning the service’s legality. Despite issues over the legality of this mode of transport service, demand for it has only increased since its introduction almost a decade ago.

Now that the government has indicated its clear intention to regulate car-hailing platforms, there is no better time to discuss possible challenges in formulating a regulatory framework.

Car-hailing services are not a new phenomenon. In fact, this mode of transport has now established itself as a norm around the world. Since their emergence, many jurisdictions have chosen to regulate car-hailing services in an attempt to incorporate them into the local transport network.

From these overseas experiences, we can perhaps foresee some of the challenges which the government may face in ensuring that car-hailing services become a fair, safe, efficient and reliable mode of transport for the people of Hong Kong.

Particular areas of concern are insurance, the legal status of car-hailing platforms and their drivers, and their coexistence with Hong Kong’s existing taxi services.

In terms of insurance, third-party insurance is compulsory for all motor vehicles on public roads in Hong Kong, and it is expected that any new regulation for car-hailing platforms would include similar requirements.