Uber launches in Nepal, eyes expansion beyond ride-hailing

Global ride-hailing giant Uber has officially entered the Nepali market, marking its presence as the fourth international player in the country's ride-hailing sector. The company has partnered with Taximandu to launch its services and is currently exploring different business models, such as subscription-based and commission-based systems, to best suit the local market.

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There is a lot of potential in terms of different products that we can launch. There is courier, food delivery and intercity travel, which is a very big opportunity. All of this is something that we are evaluating at this stage.

Uber officials highlighted that foreign travelers are a key target demographic, noting that users from countries where Uber already operates can use their existing app. The company also sees substantial opportunities to diversify beyond ride-hailing, with potential expansions into courier services, food delivery, and intercity travel.

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Almost 2,500 drivers have connected with us within less than a week, including both two-wheelers and four-wheelers. More than 20,000 drivers attempted to download the app.

Since opening driver registrations, Uber has reported strong interest, with approximately 2,500 drivers signing up within a week. The company is making a significant investment in Nepal and is in the process of registering its local operations. Uber's vice-president, Dominic Taylor, stated that the decision to enter Nepal now is influenced by the country's new youth-led government and the preparation of ride-sharing legislation, deeming it the opportune moment.

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As Nepal has a new youth-led government and is also preparing ride-sharing legislation, we believe this is the right time to enter the Nepali market.

Taylor further explained that Nepal's growing tourism industry was a primary factor, attracting many visitors from countries where Uber is already established. He also suggested that motorcycle ride services could become Uber's largest segment in Nepal, drawing on the company's experience in similar markets. Despite existing competition, Uber expressed confidence in its ability to compete effectively with both international and local ride-hailing companies.

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We looked at markets where we could create the most value and where there is significant growth potential. Nepal attracts a large number of tourists every year, many of whom come from countries where Uber already operates, such as India and the United States.