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Uber Technologies (NYSE:UBER) could be impacted by the Hong Kong government’s efforts to regulate online car-hailing platforms through licensing requirements and by imposing tougher penalties on illegal ride services.
Notably, transport officials in Hong Kong sent a proposal to the legislature asking for further study on the proposals. The officials also said they would further assess and iron out details, such as requirements for obtaining licenses and the number of vehicles that can be run through online platforms. The government is aiming for a “win-win” scenario for the transport industry and passengers through licensing and an improvement in the quality of taxi services. Authorities plan to complete the legislative proposals sometime in 2025.
While Hong Kong’s taxi industry has long resisted online platforms like Uber (UBER), they have become increasingly popular with consumers. However, it is illegal in Hong Kong for drivers of private vehicles to provide paid services to customers without a permit. Police in Hong Kong have arrested some Uber drivers suspected of driving without a permit in the past.
Shares of Uber Technologies (UBER) inched up 0.10% in Monday afternoon trading.
