Gandaki Ride-Sharing Regulations
1st September 2025, Kathmandu
What began as a landmark decision celebrated as a victory for modern mobility and consumer choice has stalled in a bureaucratic and political quagmire.
Gandaki Ride-Sharing Regulations
The Gandaki Province government’s bold move to legalize ride-sharing and self-drive services, initially met with nationwide acclaim, now faces a prolonged and puzzling delay in implementation.
Three months after a self-imposed one-month suspension, the regulations remain on hold, raising serious questions about the government’s resolve and its ability to stand up to powerful transport syndicates.
The saga started on April 12, when the Gandaki Council of Ministers approved new regulations to bring ride-sharing platforms like Pathao and inDrive under a legal framework.
This was a pioneering step, given that these services have long operated in a legal gray area across Nepal. The decision was hailed by the public, who saw it as a move to break the monopoly of traditional taxis and address the worsening public transport situation in Pokhara.
However, the transport entrepreneurs were quick to react. Their dissatisfaction led to a nationwide public transportation shutdown from June 1 to June 3.
Faced with widespread public hardship, the federal government intervened, holding talks with the entrepreneurs and, in a move widely seen as undermining provincial autonomy, agreed to a temporary suspension of the Gandaki regulations.
This federal directive prompted Chief Minister Surendra Raj Pandey to suspend the rules for one month on June 3, despite traffic management being a provincial jurisdiction.
At the time, CM Pandey was a vocal proponent of the new rules, declaring, “No one can stop the implementation of the ride-sharing regulations after one month.”
This firm stance earned him support from the public and even the provincial opposition. Yet, the promised one-month window has long since closed, and the regulations have not been enforced.
This inaction has shifted public sentiment from praise to criticism, with many accusing the provincial government of bowing to pressure from transport entrepreneurs and failing to dismantle the transport syndicate.
Former FNCCI president Anand Raj Mulmi voiced these concerns, stating, “Citizens were enthusiastic after the decision to legalize ride-sharing. But now people are questioning whether the suspended regulations will simply be shelved. With worsening public transport in Pokhara, weak government regulation, and no ride-sharing implementation, public doubts are natural.”
The issue has even been brought to the provincial assembly, where member Hari Bahadur Bhandari questioned the non-implementation of the regulations and the continued unchecked operation of illegal two-wheeler ride-sharing and arbitrary taxi fares. He highlighted the irony of a government that was once celebrated for its courage now facing criticism for its inaction.
Legal challenges have also emerged. The Consumer Rights Protection Forum filed a petition in the Supreme Court, arguing that the suspension was unconstitutional, against the spirit of federalism, and a violation of human rights.
On June 24, the Supreme Court issued a crucial interim order directing the government not to suspend the regulations and to ensure public transportation is not halted. This ruling effectively provided a green light for the Gandaki government to proceed with enforcement without fear of federal interference.
Despite the judicial backing and strong public demand, the province’s inaction persists. CM Pandey acknowledges the delay, claiming that talks with entrepreneurs are ongoing.
He has appealed to them to join the regulated system, even offering incentives like a 50% discount for taxis and public transport that register under the new rules.
The details of the dispute center on several key points, including fees and vehicle classifications. While the regulations initially set a high service fee, the subsequent Finance Act reduced it to make it more palatable for operators.
However, key disagreements remain, particularly regarding the use of four-wheelers. Entrepreneurs insist that four-wheelers should only operate with existing black-plate taxis, while CM Pandey argues for separate number plates for ride-sharing cars.
The legal provisions are clear: illegal operations without registration are subject to a hefty NPR 100,000 fine, which doubles for repeat offenses.
However, with the government failing to issue a public notice for applications, the current ride-sharing landscape in Pokhara remains a mix of illegal, unregulated services and a frustrated public.
CM Pandey has pledged that the regulations will be fully implemented within the current fiscal year. Yet, without a concrete timeline, the delay continues to cast a long shadow over his government’s initial show of strength.
For the people of Pokhara, the wait for a more organized, affordable, and consumer-friendly transport system continues, leaving them to navigate the same old issues of taxi syndicates and unregulated fares, all while a perfectly good solution sits unused on a shelf.
The fate of Gandaki’s ride-sharing regulations will be a defining test of provincial authority and political will in the face of entrenched interests.
For more: Gandaki Ride-Sharing Regulations