| Few things are as iconic of Hong Kong — or bring out as much emotion — as its ubiquitous taxis. They are plentiful, relatively cheap and a key pillar of the city's robust transport infrastructure. But complaints abound, over the state of the cars, the ability of the drivers, the lack of digital payments. Enter: ride hailing. That quintessentially 21st century solution has been a massive headache for the government. For over a decade now, the sector's global giant Uber has operated in Hong Kong in a gray area, and racked up legions of riders while sparking the anger of the powerful cabbie lobby. Change now is underway, though the exact direction is far from certain. The government is moving toward regulating ride-hailing services, and it's finally ready to set up a legal framework for these popular platforms. On Wednesday, the transport agency proposed rules such as licensing fees and driver exams for five-year licenses. It's unclear when the new rules might come into effect.  Hong Kong icons at work. Photographer: Paul Yeung/Bloomberg The attention on Uber ramped up last July when the government outlined its long-awaited plans. By February, cabbies threatened a five-day strike to demand more forceful steps. (As we noted then in this newsletter, it would've been a rare instance of disobedience in the city post-national security law, but they never followed through — not the first time they've called off a strike.) Last month, Uber itself became more vocal about its concerns, emailing users to warn of potential disruptions should a cap be placed on the number of drivers or vehicles allowed on the platform. Let's take stock of where the issue stands today and dive into the forces driving each side. What's wrong with Hong Kong taxis? It all boils down to the service being outdated. Most of the cars have looked the same for 30 years and some of the interiors feel even older, if that's somehow possible. (The Toyota Comforts that make up the majority of the fleet started production in 1995 and have won awards for longevity, not stylings). The fact that they often only take cash is a particular sore spot in a city where people are used to tapping their phones to pay for everything from buses to bar tabs and vending machines. Hong Kong cabbies have also developed a reputation for erratic driving, likely not helped by the fact the workforce is aging. About two-thirds of over 200,000 taxi drivers in Hong Kong are older than 60. Accidents involving drivers in their 60s have risen 40% over the past three years, and even more for those in their 70s. These incidents have led to a petition calling for a ban on elderly drivers. How has the taxi industry resisted change for so long? Long-entrenched interests can be difficult to challenge anywhere in the world, and Uber's rise has sparked backlash in many countries. In a city like Hong Kong, where car ownership is far below the norm for developed nations — it's on par with Pakistan and Samoa at less than a sixth of the US level — taxis can exert outsize influence. Any service outage can cause significant disruption and pressure the rest of the transport infrastructure. With their large numbers and long history, taxi owners and drivers also have deep political connections. Adding to their anger, a taxi license is now worth HK$2.85 million ($367,000), down from HK$7.3 million a decade ago. The Hong Kong government, focused on maintaining public order, has taken the risk-averse approach of minimal interference with taxis while tacitly allowing the growth of ride hailing to keep the wider public placated.  Who's got next? Photographer: Lam Yik/Bloomberg What has the government done to address the problem? Authorities recently issued taxi fleet licenses to five companies, including new joint ventures, to introduce a premium tier. Last year, transport chief Angela Lee said that a total of 3,500 cabs, around 20% of the city's total, will be run by these five operators, according to a report by the Hong Kong Free Press. The government has also encouraged the acceptance of digital payments and some have begun accepting Octopus cards, Alipay and WeChat Pay. What is the status of ride-hailing services in Hong Kong? Uber launched in Hong Kong in 2014 and has tens of thousands of drivers in the city — by far the dominant player, based anecdotally on the availability of cars on its platform compared to others. It also acquired the popular HKTaxi app in 2021, which it shut down and encouraged users to migrate to its main platform. But more players are trying to muscle in, including China's Didi Global, Alibaba's Amap and Singapore-based Tada, which is hoping to attract more drivers with its zero-commission model. Though such services have operated in a gray area, Hong Kong rules are unclear about the drivers needing a hire car permit — failure to do so being punishable by six months in jail and a HK$10,000 fine. The fact that there are only 1,500 such permits shows thousands of drivers have flagrantly ignored the rule and deemed the risk of punishment worth it.  There's a gray area. Photographer: Lam Yik/Bloomberg What are the options being considered? The ride-hailing industry will be keenly watching if the government caps the number of drivers or cars allowed. The best-case scenario for it would be no quota, and the worst a very low cap. Other issues could include background checks on drivers or other rules. In March, Uber held a media event in Hong Kong and offered its own suggestions for the regulatory framework, including ensuring platforms be licensed and have safety measures and insurance in place, and that drivers be licensed and pass background checks. What does this mean for customers? It's unclear at this point. It appears that Uber and its rivals avoided a limit on driver numbers for now, but the proposals would raise the barrier for any new entrants. While welcoming the government's unveiling of the new framework, an Uber spokesperson said the company "remains concerned" about a potential cap, which could mean longer waiting times and fewer work opportunities for drivers. There's also no sign as yet of requiring traditional taxis to upgrade services. So the bottom line, in true Hong Kong style, is that change will be incremental and slow. —Newley Purnell and Alice Truong, with assistance from Dominic Lau  | | | Bar Leone, known for its impeccable negronis, has retained its crown as Asia's best bar — and extended Hong Kong's run atop the list, having dethroned three-time winner Coa in 2024. With signature drinks like its olive oil sour, Bar Leone was co-founded by Lorenzo Antinori, the Rome-born bartender who worked in London and Seoul before joining award-winning Argo in Hong Kong's Four Seasons. Read Hong Kong Edition's review of the bar from 2024 and find some more tips from our TV crew here. —Filipe Pacheco  Bella Roma in Hong Kong's Soho. Photographer: Bar Leone | 
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