14th May 2025, Kathmandu
The Gandaki Province government has officially given legal status to ride-sharing services. Now, private two-wheelers and four-wheelers can carry passengers after meeting certain requirements. They must follow the set process and include passenger insurance.
Gandaki Province Ride-Sharing
New Rule Approved by Cabinet
The decision came after a cabinet meeting on Tuesday. The meeting passed the “Gandaki Province Vehicle and Transport Management Regulation, 2080.” This regulation now allows ride-sharing companies to operate legally.
Minister for Physical Infrastructure Development and Transport, Prakash Bahadur KC, shared the news. He said the move was based on a Supreme Court ruling and public demand. “The regulation gives ride-sharing a legal path,” he said. “It will soon come into action.”
Supreme Court’s Role
Earlier, the Supreme Court had directed the government to manage the legal gap. It connected ride-sharing to consumer rights, labor rights, and employment. The Court called for quick action to create a proper legal structure.
By following this direction, the Gandaki government has addressed the issue. Ride-sharing platforms like Pathao, inDrive, Sajilo, and Taximandu will now operate within legal boundaries.
Long Struggle Ends
Until now, these services operated without legal backing. The government and the transport ministry worked for a long time to bring them under the law. Minister KC said many efforts went into this decision.
Officials held several rounds of talks with transport operators and other stakeholders. According to Undersecretary Pradeep Kumar Regmi, they discussed the matter step by step. He noted that some transport groups had differing views. Still, the regulation was finalized after a detailed consultation process.
“Ride-sharing falls under provincial control,” he added. “We used this authority to set clear rules.”
Previous Ban in Pokhara
A few months ago, the ministry had stopped ride-sharing in Pokhara. Private vehicles were using apps to offer rides. However, they did not have legal approval.
At that time, transport associations opposed the trend. They said private vehicles with red number plates were breaking the law. The Transport Management Act, 2049, does not allow such vehicles to carry passengers. This created a legal and business conflict.
What the Regulation Says
Under the new regulation, private vehicles can now offer ride-sharing services. They must complete a set process. This includes registration, insurance, and approval.
Only vehicles with proper documents can join ride-sharing apps. Standards and procedures will be introduced soon. After that, these vehicles can legally register with ride-sharing companies.
License Now Mandatory
Ride-sharing companies must now get a license from the province. The regulation has fixed the following fees:
NPR 25,000 for two-wheeler services
NPR 50,000 for four-wheeler services
NPR 70,000 for companies offering both
These fees apply during initial registration. During renewal, companies will pay 50% of the original amount.
Other Fees and Requirements
Companies must also pay a service fee to the provincial Transport Management Office. Vehicle owners who wish to join the ride-sharing system must pay a separate fee as well.
This setup ensures that both the company and the vehicle owner are accountable. It also helps the government manage the sector better.
Action Against Unauthorized Services
The new rule also includes legal penalties. If anyone runs a ride-sharing business without a license, they will face legal action and fines.
To monitor operations, the regulation proposes a committee. This group will include ministry officials, led by the secretary. They will ensure all companies follow the rules.
Future of Ride-Sharing in Nepal
This is the first time a provincial government has formally legalized ride-sharing. The decision may set an example for other provinces and even the federal government.
Companies like Pathao and InDrive already operate in cities like Kathmandu and Pokhara. The new rule will give them a legal route to expand in Gandaki.
A Step Toward Smart Mobility
The regulation opens new doors for digital transportation in Nepal. It supports tech-driven solutions and helps create jobs. With safety, insurance, and legal clarity in place, both riders and drivers can benefit.
It also reduces the legal grey area that existed for years. Now, users can trust the platforms, and service providers can operate without fear of shutdown.
Conclusion
Gandaki Province has taken a bold step to modernize its transport system. By giving legal recognition to ride-sharing, it has shown a commitment to innovation, safety, and service. Other provinces may soon follow this model.
For more: Gandaki Province Ride-Sharing