An innovative, proportionate framework could encourage standardisation and the orderly expansion of services. With careful oversight and opportunities for open dialogue, policymakers have a chance to foster sustainable development, increased consumer choice and economic benefits from new transport technologies.

If a licensing framework for ride-hailing operations can be established, regulators would be wise to adopt an incremental and demand-driven approach. Careful phasing of new permits based on transport needs could help mitigate sudden disruption to existing taxi services while accommodating consumer interest in innovative mobility solutions.

Strict prohibitions on the resale of licences could guard against speculative practices and ensure resources are allocated to legitimate businesses. A gradual roll-out could help the transition, giving established operators time to adapt and enabling new entrants to participate effectively. With open communication and a focus on balanced growth, policymakers can implement sustainable reforms that benefit all stakeholders involved.

04:41

Where do drivers stand in Hong Kong’s Uber vs taxi battle?

Where do drivers stand in Hong Kong’s Uber vs taxi battle?

While developing the ride-hailing industry, the government can also enhance the city’s transport infrastructure.

In 2023, 740,000 new energy ride-hailing vehicles were sold in mainland China, accounting for 87 per cent of new vehicles. Hong Kong should encourage ride-hailing platforms to use new energy vehicles and create green, low-carbon smart mobility.

Currently, out of over 18,000 taxis in Hong Kong, there are 4,697 barrier-free taxis accessible to wheelchairs, accounting for 25.9 per cent. In comparison, the proportion of barrier-free taxis is generally higher in metropolitan areas like London.

New York City has pledged to make 50 per cent of its taxis wheelchair-accessible, although the city is still working to achieve that goal. Hong Kong should learn from the experience of advanced cities and provide more support for barrier-free vehicles in terms of ride-hailing licensing and operational subsidies.

Thus, the fourth task for the government should be to fix the inadequate infrastructure for ride-hailing services. There is also a lack of dedicated ride-hailing pickup and drop-off points, often requiring temporary roadside stops for picking up or dropping off passengers, impacting the flow of traffic.

Hong Kong should speed up the establishment of designated pickup and drop-off points at major transport hubs, commercial areas, tourist attractions and other venues, as well as increase the number of charging stations in car parks and other locations, providing strong support for the high-quality development of ride-hailing services.

Embracing emerging mobility technologies has become a hallmark of advanced urban centres worldwide – an inevitable progression as cities strive to align their transport ecosystems with broader “smart city” visions. For Hong Kong, navigating this path forward requires a delicate balancing act from the authorities.

At the core is the need to build a broad social consensus around the future of point-to-point transport in the city. This will demand extensive stakeholder engagement, drawing deeply on Hong Kong’s unique context and priorities. Only then can Hong Kong strike the right balance – between control and openness, and encouraging lawful practices while leveraging smart regulatory tools.

Achieving this equilibrium is critical to unlocking the full potential of Hong Kong’s transport future. By rising to this challenge, the city can cement its status as a true pioneer in smart, sustainable and inclusive urban mobility.

Dr Tik Chi Yuen is chairman of Third Side

Casper Wong is vice-chairperson of Third Side