Ride-hailing riders suspend protest, but fare dispute remains unresolved

Ride-hailing drivers in Nepal have suspended their protest after the Ministry of Physical Infrastructure and Transport mediated a meeting with the ride-hailing platform inDrive. The drivers had staged a sit-in for several days, demanding a minimum base fare and improved safety measures.

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We are aware that a group of rider partners has gathered outside our office. The company values the feedback and grievances raised by riders and is responsibly reviewing and monitoring their concerns to find solutions. We remain committed to maintaining continuous dialogue with riders.

inDrive committed in writing to address the drivers' concerns, leading to the suspension of the agitation. However, a concrete agreement on the minimum fare per kilometer remains elusive. The sector, with over 300,000 riders and 19 platforms in Nepal, faces challenges due to a lack of clear laws, making it difficult to reconcile fares, driver earnings, and passenger needs.

The core of the dispute involves drivers' demands to be consulted on policy changes regarding fares, commissions, and bonuses, and to prevent unilateral rule-making by companies. They also cite high commission rates and the financial burden of a 5% VAT, which they argue should not be solely deducted from their earnings. Drivers report operating costs of Rs14-15 per kilometer but earning only Rs12-14, leading to financial strain and debt for repairs and medical treatment.

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We are positive for now, but not confident. If the problem is not resolved within the next five days, or if we are given only assurances and delays as before, we will be forced to resume our protest.

While the drivers are cautiously optimistic, they have warned of resuming protests if their demands are not met within five days, emphasizing that past assurances have not led to resolution. The situation highlights the precarious position of gig economy workers in a rapidly expanding but poorly regulated sector.

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We are under financial strain because we have to work for fares below our operating costs. When our bikes break down or we are involved in accidents, we even have to borrow money to pay for treatment.