By Felix Kong｜Licensed Insurance Agent
Looper Insurance Agency Limited (GA1034)
Published: 2026-08-31｜Last updated: 2026-08-31

The Road Traffic (Amendment) (Ride-hailing Service) Ordinance 2025 (Ord. No. 43 of 2025) was gazetted on 24 October 2025, and its main provisions came into operation on 3 August 2026. From that date, carrying passengers for reward in a private car is no longer automatically an offence, provided three licences are in place. This guide covers one question only: what you and your car actually need before you can accept a booking. Insurance gets one mention at the end, and it is not the point of the article.

Table of Contents

1. Where the scheme has reached

2. Three licences, and who applies for which

3. What your car has to satisfy

4. What you as a driver have to satisfy

5. The fees

6. What is not in force yet

7. FAQ

1. Where the scheme has reached

In short: platforms are already queueing, while car owners and drivers wait for Q4. The written test, however, is open now.

2. Three licences, and who applies for which

Section 55C is precise about this. Carrying passengers for reward in a private car does not contravene section 52(3)(a) where three conditions hold at the same time: the car holds a ride-hailing vehicle permit, the driver holds a ride-hailing driver permit, and the trip was booked through a licensed platform. All three, not any one of them.

There is a further requirement that gets overlooked. Section 55E provides that only the registered owner may drive that vehicle to provide a ride-hailing service, and section 55F makes it an offence for a platform to allow a non-owner to do so. In practice that rules out buying a car and renting it to someone else to drive, and it rules out several drivers sharing one vehicle.

3. What your car has to satisfy

Section 55T(3) sets out the conditions for a vehicle permit. They include:

• Age: manufactured less than 12 years before the date of application. The original policy proposal was 7 years and was relaxed to 12. Note that section 55T(6) allows the Secretary to amend that period by notice in the Gazette, so it is not a fixed number.

• Inspection: for a vehicle over 6 years old, a roadworthiness certificate issued within the past year.

• Insurance: third party risks insurance complying with the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272) that is valid in respect of the private car being used to provide a ride-hailing passenger transport service.

• Hire car permit: if the car holds one, written consent to its cancellation.

• Registration in an individual name, consistent with the owner-driver rule.

The insurance condition is not a one-off box to tick at application. Section 18(3)(f) of the Road Traffic (Ride-hailing Service) Regulation (L.N. 61) imposes the same requirement on renewal, and section 21(3)(f) does the same on a change of vehicle. It follows the permit for its whole life.

4. What you as a driver have to satisfy

The Transport Department sets out these criteria:

• At least 21 years old

• Holding a Hong Kong permanent identity card, or an appropriate conditional identity card

• Holding a full private car driving licence for at least 1 year (a learner's licence does not count)

• No conviction for specified serious traffic offences in the past 5 years

• Passing the combined taxi and ride-hailing written test, valid for 3 years

• Completing a pre-service course, to be done within 1 year

Drivers who already hold a full taxi driving licence are exempt from both the test and the course.

The test itself: 65 multiple-choice questions in 45 minutes. Applications opened on 3 August 2026 and the first sitting is in mid-September 2026. More than 1,000 drivers had registered by early August.

5. The fees

For an individual owner the licence fees are modest. The real cost sits in the age limit, the inspection, and the insurance arrangement.

6. What is not in force yet

This is the section most often reported wrongly. Commencement is staged, and the Commencement Notice (L.N. 64 of 2026) expressly defers the following to 22 August 2027:

• Section 55B, the offence of operating an unlicensed ride-hailing platform (fine up to HKD 1,000,000 and 12 months' imprisonment)

• Section 55D, requiring a licensed platform to ensure vehicles and drivers hold permits

• The new Part 9C, temporary suspension of a vehicle licence before conviction in certain circumstances

• Amendments to sections 93 and 95, covering suspension of vehicle licences, delivery to the Commissioner, and seizure and removal of vehicles

Several reports stated that enforcement officers could impound vehicles from 3 August 2026. That does not match the commencement notice. The seizure and pre-conviction suspension provisions do not come into operation until 22 August 2027.

A second common error concerns penalties. The fine for carrying passengers for reward without a permit, up to HKD 10,000 and 6 months' imprisonment for a first offence and HKD 25,000 and 12 months on repeat, is not new. It has applied since the 2023 amendments. What the ride-hailing ordinance added on 3 August 2026 is a mandatory disqualification from driving of 12 months to 3 years, unless the court finds special reasons.

7. FAQ

Q: Is driving for a ride-hailing app in a private car legal right now?

A: It depends on three conditions. Section 55C provides that carrying passengers for reward does not contravene section 52(3)(a) where the vehicle holds a ride-hailing vehicle permit, the driver holds a ride-hailing driver permit, and the trip was booked through a licensed platform. As at 31 August 2026 none of the three has started to be issued; vehicle and driver permits are expected to open in Q4 2026.

Q: How many vehicle permits are there?

A: 10,000, set by the Road Traffic (Ride-hailing Service) (Quota of Vehicle Permits) Notice (L.N. 63 of 2026), in force since 3 August 2026. It is a statutory figure rather than a policy intention.

Q: My car is 10 years old. Can I still apply?

A: The condition is that the vehicle was manufactured less than 12 years before the application date, so a 10-year-old car qualifies. Two caveats: a vehicle over 6 years old needs a roadworthiness certificate issued within the past year, and section 55T(6) lets the Secretary amend the age limit by notice, so check the position on the day you apply.

Q: Can I buy a car and let a friend drive it on the platform?

A: No. Section 55E provides that only the registered owner may drive the vehicle to provide a ride-hailing service, with a level 3 fine on breach, and section 55F makes it an offence for a platform to allow a non-owner driver. This is the owner-driver rule.

Q: I already drive a taxi. Do I need to sit the test?

A: No. The Transport Department exempts holders of a full taxi driving licence from both the combined written test and the pre-service course.

Next Step

Of all the statutory conditions for a vehicle permit, one cannot be arranged at the last minute: third party risks insurance that is valid for ride-hailing use. The ordinance and the subsidiary legislation refer to that requirement in four places, and not one of them specifies what form the product should take. For where a standard private car policy stands on this, see our note on ride-hailing and private car cover.

Related Articles

• Your Private Car Policy and Ride-Hailing: The Use Clause Problem

• Motor Insurance in Hong Kong: Third Party vs Comprehensive

• What Private Car Comprehensive Cover Actually Includes

• Motor Claim Walkthrough

Free Quote

Looper Insurance Agency Limited (GA1034) offers a free motor policy check and quotation service.
Tel: 2633 6813
Email: cs@looperin.com
Website: www.looperin.com

Disclaimer: This article is for reference only and does not constitute legal or insurance advice. Legislative content is subject to the official gazetted version and the latest Transport Department announcements; commencement status is stated as at 31 August 2026. Actual coverage is subject to policy terms and conditions.