What’s in Gandaki Province’s new ride sharing regulations?

KATHMANDU: A new set of rules introduced by the Gandaki Provincial Government to regulate ride sharing has sparked protests from traditional transport operators and drawn national attention.

The regulation, called the Ride Sharing (Rules and Management) Regulations 2023, aims to bring order and safety to the growing use of private vehicles to carry passengers through apps like Pathao and InDrive.

Until now, many people across Nepal have been using motorcycles and cars registered for private use to give paid rides. These services have been popular, especially among young people looking for flexible work, but they were not officially allowed under national law.

Now, for the first time, a provincial government has created detailed rules that allow and control this kind of service.

Gandaki Province says it is using its own law—passed by the provincial assembly in 2019—to do so. That law allows private vehicles to carry passengers as long as they follow certain rules, including getting insurance and registering their service properly.

Under the new regulation, anyone who wants to offer ride sharing must register a company or institution, pay taxes, and apply to the Transport Management Office for a permit. Without this official permission, it will be illegal to provide rides. The government has given current ride-sharing drivers 30 days to register.

There are also strict penalties for those who break the rules. Anyone found offering rides without permission could be fined up to one lakh rupees the first time, and double that amount if they do it again. In some cases, their vehicle could be taken off the road.

The regulation also divides ride sharing into two types. One is regular ride sharing through apps, and the other is self-drive rental, where someone rents a vehicle and drives it themselves. Both types now require formal registration and government approval.

Officials say the new rules are meant to improve safety and ensure that people pay taxes. They also want to stop confusion on the roads by making sure all ride-sharing services follow the same guidelines. However, some people worry that the rules are too strict and could make it harder for ordinary people to earn money through ride sharing.

Transport unions have strongly opposed the regulation. They say it goes against the national law, which does not allow private vehicles to be used as taxis.

On Monday, representatives of public transport businesses met with Home Minister Ramesh Lekhak to demand that the regulation be cancelled. Their protests have now spread from Pokhara to Kathmandu and other cities.

The federal government has not yet made a clear decision on whether it will support or cancel the regulation. Experts say this could lead to a legal and political conflict between provincial and federal authorities.

For now, the debate continues. While one side sees ride sharing as a modern and flexible service that helps both drivers and passengers, the other side sees it as a threat to traditional jobs and rules. What happens next could shape the future of transportation in Nepal.

Here’s a summary of what the regulations contain:

• All vehicles involved in ride-sharing must be registered through a government-approved online system.

• Ride-sharing vehicles must have insurance coverage for the passenger, third parties, and the vehicle itself. They must also undergo regular inspections, display official markings, and follow rules set by the government.

• Drivers are only allowed to charge the official fare set by the government. There are fee exemptions in place for public vehicles registering under this system.

• Vehicles must carry visible codes: “RS” for Ride Sharing and “SD” for Self Drive.

• Two-wheelers are not allowed to carry passengers for more than 20 kilometers.

• Specific zones and routes will be designated for all types of vehicles offering ride-sharing.

• Older vehicles are restricted: Two-wheelers must not be more than 10 years old, and four-wheelers must not exceed 15 years.

• Companies must guarantee passenger safety, which includes providing helmets and insurance. The app used for booking rides must include safety features as well.

• Service providers must operate a 24/7 complaint handling center.

• A monitoring and evaluation committee, led by the ministry secretary, will oversee the system’s implementation.

• Fares must follow the base rate set by the ministry. Service providers may take a maximum 12% commission per transaction and must deposit 1% of each transaction into the provincial government’s treasury.

• Working hours are capped: Drivers may not operate more than 12 hours a day.

• The rules do not apply to minibuses, city buses, large buses, or trucks.

• All ride-sharing workers must be enrolled in Nepal’s Social Security Fund by the service providers.