HONG KONG, China (AFP) — Hong Kong lawmakers passed a bill Wednesday to regulate online ride-hailing services, aiming to resolve years of tension between licenced drivers and digital platforms in the city’s transport sector.

The legislation introduces a formal framework for ride-hailing operators in the financial hub, including United States-based Uber, which launched services in Hong Kong in 2014.

Uber has said it brought investment and job opportunities to Hong Kong, but has faced criticism from local taxi drivers who argue the platform has undercut their earnings and operated with an unfair advantage.

The company did not immediately respond to AFP’s requests for comment.

In 2015, Hong Kong police raided Uber’s local office and arrested several drivers for allegedly carrying passengers without proper licences.

For years, the city lacked a regulatory structure to address the matter.

But in July, chief executive John Lee said the problem could no longer be “put off”, and that traditional taxis and online ride-hailing vehicles could “co-exist”.

Under the new rules, eligible ride-hailing drivers must be at least 21 years old, hold a private car licence for at least one year, and have no serious traffic convictions within the past five years.

Platforms, vehicles and drivers will all be required to obtain licences, and drivers must pass a designated test.

Hong Kong’s transport commissioner will determine the number of ride-hailing permits to be issued, according to the legislation.

In July, Uber expressed concern over proposed caps on vehicle numbers, warning that artificial limits could reduce driver earnings and increase wait times.

Operating a ride-hailing service without a permit could result in imprisonment and fines, according to the legislation passed Wednesday.

Secretary for Transport and Logistics Mable Chan said that licensed ride-hailing platforms are expected to begin operating in the fourth quarter of 2026.