Two mainland Chinese ride-hailing operators in Hong Kong have backed a controversial plan to regulate the industry by capping vehicle permits at 10,000, a figure the city’s largest American business chamber considers insufficient. In submissions to the Legislative Council on Monday and in recent days, Amap and Didi Chuxing said they supported the Transport and Logistics Bureau’s proposed cap as part of a new regulatory regime scheduled to be passed by lawmakers in July. Amap said the government’s cap “fully considered” Hong Kong’s urban conditions, balancing demand while “avoiding cutthroat competition” and road congestion arising from unrestricted licensing. “Amap highly recognises the prudent attitude of ‘total volume control and dynamic assessment’,” it said in its submission to the Legco. The company added that it would leverage its capabilities to provide strong data support for the government’s subsequent dynamic assessments. Amap is owned by Alibaba Group Holding, which also owns the South China Morning Post. Didi said it understood that formulating and implementing the new scheme must account for safety, order, stability and passenger needs. “Advancing online ride-hailing regulation prudently in the initial phase will help the regime start smoothly, allowing all sectors of society to gradually adapt to the newly established regulatory framework,” it said. Didi also called on authorities to review the scheme “in short cycles” using a “small steps, fast strides” approach. The proposed cap has drawn criticism from multiple sides. Taxi drivers argue 10,000 permits are too many, while Uber, the city’s dominant ride-hailing platform, says the number is too low, despite the government’s pledge to adjust it dynamically based on market conditions. The proposal also sets out requirements for ride-hailing drivers, vehicles, insurance, safety and penalties for non-compliance. In a document obtained by the South China Morning Post, the American Chamber of Commerce in Hong Kong said the initial quota of 10,000 licences might not fully reflect the market demand for ride-hailing services and could potentially increase wait times and prices. It called for a regular, data-driven review mechanism for the quotas and urged authorities to remain open to future capacity increases and adjustments based on real-time market reactions and evolving consumer demand. “We also hope the authorities can prioritise licence allocation to existing, highly engaged drivers to maintain immediate service quality and stability,” it said. However, Secretary for Transport and Logistics Mable Chan has said authorities will not favour existing ride-hailing drivers, such as those working with Uber, citing concerns over encouraging illegal activities and practical implementation difficulties. Other stakeholders, including taxi owners and unions, have submitted views.