Nepal moves to regulate ride-sharing, ride-hailing after nearly a decade

After nearly nine years of operating in a regulatory gray area, Nepal is finally taking concrete steps to formalize the burgeoning ride-sharing and ride-hailing sector. The Ministry of Physical Infrastructure and Transport's proposed Digital Mobility Service Operation Standards, 2026, represent a landmark effort to bring platforms like Tootle and Pathao under a unified framework, as detailed by the Kathmandu Post.

This move is particularly significant for Nepal, where these digital mobility services have become an integral part of urban transportation. The rapid, unregulated expansion has brought convenience but also raised concerns about safety, fare transparency, and fair competition. By defining ride-sharing and ride-hailing, and establishing clear licensing procedures, fare ceilings, and safety provisions, the government aims to create a more structured and accountable ecosystem.

The requirement for a centralized digital system managed by the Department of Transport Management is a crucial element. It promises enhanced transparency and oversight, allowing for real-time monitoring and enforcement of regulations nationwide. This integration is vital, especially for provincially regulated services, ensuring that data flows seamlessly and compliance is maintained across the board. The framework also addresses the classification of vehicles, designating ride-hailing vehicles as public transport, a distinction that will likely impact operational standards and public perception.

While Pathao Nepal's managing director, Asheem Man Singh Basnyat, has welcomed the initiative, he notes that the draft may not fully address all emerging industry needs. This suggests that while the regulation is a necessary and positive step, ongoing dialogue between the government and the industry will be essential to refine the framework and ensure it supports sustainable growth and innovation within Nepal's digital mobility landscape.

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