Hong Kong Plans Ride-Hailing Permit Lottery as Platform Licence Deadline Nears

10,000 vehicle permits and 16,000 exam applicants

Hong Kong could announce its first ride-hailing platform approvals as early as late November 2026, as the government prepares to explain how it will allocate an initial quota of 10,000 vehicle permits. Applications from platform companies close at noon on October 30, while about 16,000 people have already applied for the combined taxi and ride-hailing written examination.

Secretary for Transport and Logistics Mable Chan said the government favoured a lottery if applications exceeded the vehicle quota. Officials are also considering giving some applicants extra chances, including people who registered for or completed examinations early and people who have owned a private car for some time. Details of the allocation arrangements are expected during November.

The decisions will determine both which booking apps enter the regulated market and which car owners can provide services through them. Companies will be assessed on their operating experience, financial strength and plans for passengers, including waiting times and how vehicles are allocated.

Chan described strong industry interest but said it was too early to estimate how many platforms would eventually operate. The government wants a choice of capable operators and continued competition, with the market later helping determine which businesses survive.

The 16,000 examination applicants amount to 1.6 times the initial vehicle quota, or 6,000 more people than available vehicle permits. Examination applications and vehicle permit applications are separate stages: candidates still need to meet the relevant driver and vehicle requirements before they can provide services.

How the proposed lottery would work

Chan said a lottery offered a way to distribute permits fairly if demand exceeded supply. The government is considering whether evidence of commitment to entering the industry should give an applicant additional chances within that draw.

Possible factors include early examination registration or completion, participation in the taxi driver written test before the new ordinance took effect, and having owned a private car for a period of time. Officials are also considering the position of younger people seeking to drive alongside another job and applicants already working in other industries.

The allocation formula, the number of extra chances and the eligibility cutoffs have not been announced. Chan said officials were trying to balance fair access with making sure the permits went to people willing and able to provide transport.

That balance matters to passengers. A quota limits how many cars can enter the regulated service, while the number of trips those cars actually provide depends on when and how often their owners drive. Someone working another job may offer trips only during selected hours.

The government has described 10,000 as the initial limit and plans to use operating data to assess supply and demand. Future reviews will therefore depend on how the permitted fleet works in practice, including whether passengers can find cars when and where they need them.

Three approvals are needed for a legal trip

The Transport Department's ride-hailing guidance sets out three requirements for a compliant journey: the booking platform must hold a service licence, the private car must hold a vehicle permit, and the driver must hold a ride-hailing vehicle driving permit.

The 10,000 quota applies to vehicle permits. Driver permits are a separate approval, with their own qualifications and fees. This means passing the examination is one step towards becoming an eligible driver, while obtaining permission to use a particular car involves another application.

Hong Kong also requires the driver to be the registered owner of the car used for ride-hailing. Platforms must check both the permits and compliance with this ownership rule. In everyday terms, a person cannot simply borrow another owner's permitted car to carry passengers under this arrangement.

Platforms must explain in their service proposals how they will carry out these checks, manage customer service and encourage registered drivers to provide trips. The Transport Department expects to invite both vehicle permit and driver permit applications in the fourth quarter of 2026.

Which companies can qualify?

The Transport Department's application announcement, issued on August 28, sets substantial entry requirements. Applicants must be companies registered in Hong Kong, with permanent executive personnel and an office in the city so the government can supervise their operations and service performance.

Companies must demonstrate lawful operations in a city with at least 7.5 million residents, a population comparable to Hong Kong's. They must also demonstrate an average of at least 100,000 ride-hailing passenger orders a day in two cities where they provide services.

The financial requirements include three years of audited accounts, paid-up capital of at least HK$50 million, bank deposits of at least HK$30 million and a credit facility of at least HK$30 million. Paid-up capital is money shareholders have put into the company; a credit facility is borrowing that a lender has agreed to make available.

These requirements favour applicants with established operations and resources to support continuing service. Chan said the government wanted experienced companies committed to building a team in Hong Kong, and would compare proposals according to what they offered passengers.

An assessment committee comprising representatives of the Transport and Logistics Bureau, the Digital Policy Office and the Transport Department will make recommendations to the Commissioner for Transport. A licence may run for up to five years and carries an annual fee of HK$1.2 million, alongside a HK$16,250 application fee.

Companies must submit an original application and seven copies, with supporting documents and a service proposal, to the Transport Department headquarters in Yau Ma Tei. Late applications will not be accepted, although specified severe weather conditions on October 30 would move the deadline to noon on the first working day after those conditions end.

What drivers must complete

Prospective drivers generally must be at least 21 and have held a full private car or light goods vehicle driving licence for at least one year. They must meet identity and residency conditions, physical fitness requirements and restrictions relating to specified serious traffic convictions during the previous five years.

Applicants ordinarily need to have passed the combined taxi and ride-hailing written test within the previous three years and completed the ride-hailing preparation course within the previous year. People holding a valid full taxi driving licence can apply directly for the ride-hailing driving permit without taking that examination or course again.

Applications for the combined test opened on August 3, 2026. Chan said its pass rate was above 60 percent and described the examination as serving a screening function. She said the content had been adjusted to reduce rigid route questions and place more weight on understanding areas and directions.

The test contains 65 multiple choice questions to be completed in 45 minutes. Candidates need at least 25 correct answers out of 30 in the section on operations, places and routes, and at least 30 out of 35 in the section on the Road Users' Code. The examination fee is HK$510.

Enrolment for the preparation course opened on September 25. The course comprises 12 hours of teaching in modules. A driving permit costs HK$82 a year and can last up to five years, subject to the expiry of the applicant's underlying driving licence.

Car age, insurance and permit costs

Cars used for the service must have a valid vehicle licence and have been manufactured less than 12 years before the permit application. For a car manufactured six years or more before the application, the owner must have obtained a certificate of roadworthiness within the preceding year.

Owners must also have third party insurance or security that covers use of the car for ride-hailing passenger services and complies with Hong Kong law. This cover addresses liability to other people when the vehicle is used for paid passenger trips, so owners need to check that their policy covers that activity.

The published vehicle permit fee is HK$540 for a permit lasting four months or less, HK$1,560 for more than four months but no more than 12 months, and HK$2,100 for a period exceeding 12 months. Its validity depends on the expiry date of the vehicle licence.

A vehicle certificate costs HK$245, while an application to change the car covered by a vehicle permit costs HK$1,500. Vehicles must display the certificate while providing services; the department will announce the application and display arrangements later.

For a driver who needs the examination and receives a vehicle permit lasting more than four months but no more than 12 months, the published charges total HK$2,397: HK$510 for the test, HK$82 for one year of the driver permit, HK$1,560 for the vehicle permit and HK$245 for the certificate. Course fees, insurance and other vehicle costs would come on top.

How the rollout reaches 2027

The government's July legislative statement explains that the Road Traffic (Amendment) (Ride-hailing Service) Ordinance 2025 established the framework after its passage in October 2025. Four pieces of subsidiary legislation then supplied detailed rules on matters including fees, records, permit limits and commencement dates.

The timetable separates the opening of applications, the issuing of licences and the commencement of the remaining legal provisions:

• October 2025: The Legislative Council passed the amendment ordinance.
• July 16, 2026: The government announced completion of scrutiny of four pieces of subsidiary legislation.
• August 3, 2026: Most regulatory provisions took effect and combined written test applications opened.
• August 28, 2026: Platform licence applications opened.
• September 25, 2026: Enrolment opened for the 12-hour driver course.
• October 30, 2026: Platform applications close at noon, subject to the severe weather arrangements.
• November 2026: Permit allocation details are expected, with first platform results possible as early as late November.
• August 22, 2027: The remaining legal provisions take effect.

The government expects licences to be issued in phases. Licensed companies can then recruit owners holding valid permits, verify their details and prepare their platforms under Transport Department supervision.

Passenger safety and operating data

The Transport Department is developing a data management system that will connect with licensed platforms and receive operating information in real time. Officials intend to use it to monitor compliance and assess changes in transport supply and demand.

A government spokesman explained the intended use of that information in the August application announcement:

Such data will help the Government to regulate ride-hailing services, master the actual operation of platforms, and conduct dynamic assessments of market development and changes in supply and demand for future policy reviews.

Licensed platforms must transmit and store service data securely in the manner specified by their licence conditions. Without the consent of the people concerned, they must not use the data for other purposes or pass it to other people or organisations.

Chan has also outlined plans for surprise checks to verify driver identities and requirements for apps to include trip sharing and a button for requesting support. A baseline survey of ride-hailing use was planned for the third quarter of 2026 to help officials compare existing travel patterns with later operations.

Where taxis fit into the new market

Taxi services form part of the platform application requirements. Companies must explain how they will provide taxi booking services and encourage taxi drivers to register, alongside their plans for private cars offering ride-hailing trips.

Chan said taxis and ride-hailing cars should coexist and complement each other. The direct application route for holders of full taxi driving licences gives those drivers an entry route, although anyone using a private car must still meet the ownership and vehicle requirements.

Enforcement is also becoming stricter. Provisions effective from August 3 require drivers convicted of offences relating to illegally carrying passengers for payment to be disqualified from driving for at least 12 months and up to three years.

For passengers, the practical test of the new arrangements will be the service that emerges: how quickly a car arrives, whether enough drivers operate at busy times, and whether platforms handle safety and customer problems effectively. Those are among the issues companies must address before receiving approval.

Key Points

• Platform licence applications close at noon on October 30, 2026, subject to severe weather arrangements.
• First platform approval results could be announced as early as late November.
• The government favours a lottery if applications exceed the initial quota of 10,000 vehicle permits.
• Extra lottery chances for selected applicants are under consideration, with allocation details expected in November.
• About 16,000 people have applied for the combined written examination, and the pass rate exceeds 60 percent.
• Legal services require separate approvals for the platform, vehicle and driver, with drivers owning the cars they use.
• Most regulatory provisions took effect on August 3, 2026; the remaining provisions take effect on August 22, 2027.