Ride-sharing Services Gain Legal Recognition in Nepal

Kathmandu. Ride-sharing services in Nepal are finally set to gain legal recognition. The draft of the 'Bill to Amend and Consolidate Laws Relating to Vehicles and Transport, 2082' prepared by the Ministry of Physical Infrastructure and Transport proposes to bring services like Pathao and inDrive into a clear legal framework for the first time.

This bill, introduced to replace the three-decade-old 'Vehicles and Transport Management Act, 2049', recognizes ride-sharing as an integral part of modern transportation and establishes new regulations.

The proposed bill defines service providers like Pathao and inDrive as 'aggregators', or intermediaries. The government will now officially legalize the act of connecting transport service users (passengers) with service providers (drivers) through online or digital means. This is expected to end the legal complications that have arisen in the past due to private number plate vehicles being used for commercial purposes.

According to the draft bill, two-wheeled or other vehicles providing transport services through such digital systems will be required to obtain mandatory transport service registration. Furthermore, to ensure passenger safety, mandatory insurance will be arranged. This will ensure treatment and compensation for both passengers and drivers in case of an accident.

Additionally, while legally organizing ride-sharing, the bill has also imposed strict measures. Since it has been observed that some drivers use the app to directly negotiate with passengers and provide 'offline' rides, such activities are completely prohibited.

If any vehicle is found carrying passengers offline without using the online system (app), traffic police can immediately impose a fine of up to two thousand rupees. The government believes this will ensure passenger safety on one hand and curb the tendency of drivers to charge arbitrary fares on the other.