The age limit for private vehicles used for ride-hailing in Hong Kong will be relaxed from seven to 12 years to attract more part-time drivers under coming rules, the Post has learned, while a government source has said a proposed regulatory framework can address a recent rise in illegal services.
A source said the legal framework proposed by transport authorities to regulate ride-hailing services was approved by the Executive Council, the city’s top decision-making body, in a special meeting on Thursday.
The Post learned that during the meeting, authorities amended the previously proposed age limit for private cars used for ride-hailing services, as such vehicles already need to undergo annual inspections.
The lower threshold would also make it easier for part-time drivers to join the industry, the source said.
“Changing the age limit from seven to 12 years old is actually a natural extension. Twelve means some flexibility to enter,” a separate government source said.
The insider said the original idea was to start at seven years and allow for annual renewals until a vehicle reached 12 years.
“So in the case of an eight-year-old car, the old idea was not allowing it to join; the new idea is allowing it to join and renew [the vehicle licence] annually up to 12 years old. That means four years as a ride-hailing private car,” the source added.
In Hong Kong, private cars aged six years and above must undergo annual inspections to ensure they meet safety standards and are considered roadworthy before vehicle licences are renewed. From the seventh year onwards, licences for private cars can only be renewed upon passing the inspection.
The government source added that since authorities were considering tightening health checks for commercial drivers, the same requirement was expected to apply to those offering ride-hailing services.
Separately, the source said the proposed regulatory framework included penalty clauses targeting platforms, vehicles and drivers in response to a recent surge in cases of non-local drivers offering illegal services.
“So enforcement against illegal non-Hong Kong drivers should be much easier as platforms will be responsible as well,” the insider said.
Under the proposal, authorities will seek to amend the Road Traffic Ordinance to allow police to apply to the court to have the relevant car impounded and for the vehicle licence to be temporarily suspended, even if no prosecution action can be taken against a driver over difficulties confirming their identities.
The driver, if convicted, would also be disqualified from obtaining or holding a driving licence for no less than a specified period, likely to be between one and three years, under the proposal.
Ringo Lee Yiu-pui, honorary life president of the Hong Kong, China Automobile Association, welcomed the relaxed threshold and said that many private vehicles were very well maintained despite being older than seven years.
He added that the originally proposed vehicle age limit would have prevented some drivers from working.
“The government’s regulation on their safety and age directly impacted car owners who provide ride-hailing services. The relaxation is much better for them,” Lee said.
He said that there was a mandatory annual check for vehicles from seven years onwards, which was also good for those involved in ride-hailing, as safety was very important for commercially used vehicles.
While Lee agreed that loosening the proposed rules could potentially attract more drivers, he expressed doubts as to whether people would be willing to buy a new car to offer ride-hailing services, especially under the new framework.
“Those who are new to the industry are unlikely to get a new car for this. Even if they were not new, those under seven years are still expensive, and they won’t know how much business they will get,” he said.
Lawmaker Gary Zhang Xinyu said the proposed regulatory framework could encourage more drivers to enter the market.
“The new plan [to extend the car age limit to 12 years] provides more flexibility for drivers and allows more part-time drivers to join the market,” he said.
Zhang added he could not estimate the exact number of drivers who would benefit from the extension but he expected that the change could increase transport capacity.
In July, transport authorities announced their proposed regulatory framework for the ride-hailing industry, in an effort to legalise such services as early as the first half of next year.
Under the framework, ride-hailing platform operators and drivers will need to renew their licences every five years, and those for vehicles annually, to prevent speculative trading that is rampant in the taxi trade.
Ride-hailing vehicles must also be registered in the name of the owner, who will have to pay for commercial insurance.
Platform operators must be Hong Kong-registered companies that meet the government’s required operation threshold and have a certain investment commitment to be eligible to provide ride-hailing services.
Drivers must also be aged 21 or above, hold a private driving licence for at least one year, pass an assessment and have had no serious traffic incidents in the past five years.
Existing taxi drivers can obtain such a licence without going through the assessment. -- SOUTH CHINA MORNING POST
