Government yet to finalise ride-hailing rules as disputes over fares persist

Nepal's government is struggling to finalize regulations for its burgeoning ride-hailing industry, with proposed standards stalled for over three months due to persistent disagreements among stakeholders. The draft framework, intended to bring order to digital mobility services, faces hurdles over fare structures, commission rates, and the use of private vehicles.

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The digital mobility sector is technically complex, and every stakeholder, from ride-sharing companies and drivers to transport operators, has its own concerns. Reaching a consensus has therefore become difficult.

Officials at the Ministry of Physical Infrastructure and Transport are attempting to balance the demands of ride-hailing companies like Uber and Yango, their drivers, traditional transport operators, and the rights of consumers. The proposed standards include capping base fares at Rs25 per kilometer for two-wheelers and Rs55 for four-wheelers, with night fares potentially increasing by up to 20 percent. A significant point of contention is the commission platforms can charge, with a proposed maximum of 10 percent, leaving the remainder for drivers.

Ride-hailing companies have reportedly opposed trial implementations of pricing provisions, citing technical and financial complications. Another major dispute centers on whether privately registered vehicles, identified by red number plates, should be permitted for commercial ride-hailing. Public transport operators insist that if allowed, these vehicles must have distinct markings, a point on which no consensus has been reached.

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While addressing the concerns of service providers and drivers, we must also protect consumers' rights.

The draft, prepared by the Department of Transport Management, aims to define ride-sharing and ride-hailing for the first time in Nepal, establishing licensing, fare ceilings, safety measures, and compliance mechanisms. However, the government's pledge to fast-track these regulations has been hampered by the complexity of the sector and the difficulty in achieving agreement among all parties involved.

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The ministry even proposed implementing some of the pricing provisions on a trial basis, but most ride-hailing companies opposed the idea, citing technical and financial complications.