Ride-hailing is a common sight at least in Kathmandu but the guidelines introduced to regulate the services are still far from being implemented as officials blame the lack of government will.

In February last year, the government amended the Industrial Enterprises Act (2020) recognising ride-hailing business as service-oriented, and giving them a legal status after seven years of operation in Nepal. However, the guidelines are not in effect.

The Supreme Court issued a directive in January to expedite ride-hailing legislation. Frequent changes in government and the recent Gen Z movement are blamed for the delayed formulation and implementation of ride-hailing guidelines.

Officials at the transport ministry say when the government makes some changes, it requires them to start work from scratch, and the same happened with the ride-hailing guidelines.

Bimal Prasad Bhattarai, information officer at the Bagmati provincial Ministry of Labour, Employment and Transport, said there is no progress regarding the ride-hailing guidelines.

“The ministry has formed a high-level committee to suggest regulations on ride-sharing. Once the committee submits its report, the regulations will be prepared accordingly,” Bhattarai said. “Currently, the guidelines are not our priority.”

Due to the lack of ride-hailing guidelines, a large number of commuters are being cheated daily in terms of price and safety but there is no agency to hear their grievances and address complaints.

Bad behaviour, unfair pricing, and exploitation during difficult times have spread negativity among ride-hailers.

The Supreme Court has recognised ride-hailing as a legitimate service, noting its employment benefits and direct access to users. In 2023, the government even amended the Industrial Enterprises Act to officially recognise ride-hailing companies.

As transport entrepreneurs have expressed their disagreement to allowing red number plate four-wheelers for ride-hailing business, the Gandaki provincial transport ministry has held several meetings with them but has not yet reached any conclusion.

“We introduced the ride-hailing guidelines with the provision that any red number plate four-wheeler can also carry passengers just like a two-wheeler but transport entrepreneurs protested,” said Kamal Kumar Adhikari, secretary at the Gandaki Ministry of Physical Infrastructure Development and Transport Management.

“We have held several meetings and discussions with transport entrepreneurs but have not been able to draw up a conclusion, making implementation of the guidelines uncertain now,” Adhikari said.

On May 15, the Gandaki provincial government published the new ride-hailing regulation in its gazette. Expressing dissatisfaction, public transport services in Gandaki were halted as transport entrepreneurs and workers launched protests.

Operating under the banner “Public Transport Protection Struggle Committee,” the protesters raised three key demands: full withdrawal of the Ride-Hailing (Regulation and Management) Regulation 2025, clear and firm policies on public transport operation and vehicle imports, and mandatory implementation of the contribution-based social security fund for workers in the transport sector.

Public transport operators shut down services across major cities, including Kathmandu, Pokhara, and Bharatpur, causing severe disruption and a public outcry.

In June, the Gandaki government decided to postpone the enforcement of ride-hailing regulations by a month, following a request from the federal government.

Later in the month, the Supreme Court issued an interim order allowing the province to continue implementing its Ride-Hailing (Regulation and Management) Rules 2025, rejecting calls for a suspension of the policy.

Frustrated with public transport, many people in Kathmandu Valley rely on ride-hailing services for commuting. However, customers are not only cheated on price, their safety is also at risk due to offline rides.

Ride service providers say the lack of guidelines makes it harder to address issues like offline rides, and unregulated fares.

Ride-hailing companies are concerned that despite a five-year-old directive from the Patan High Court to regulate the sector by making laws, the government has done little towards that end.