The Gandaki Province formally implemented its ride-sharing regulation by publishing it in the provincial Gazette last Thursday, ending months of uncertainty after the rules were temporarily withdrawn in June last year following protests by public transporters.

By contrast, Bagmati Province continues to struggle to introduce similar regulations despite a Supreme Court ruling recognising ride-hailing as a legitimate and convenient service. An estimated 200,000 riders are currently engaged in ride-sharing services across Nepal under the gig economy, operating largely without clear provincial guidelines in Bagmati.

Under the newly enforced Gandaki regulation, ride-sharing services using two-wheelers are permitted only for distances up to 20 kilometres from the pick-up point. For four-wheelers, the maximum allowable distance is 50 kilometres.

The regulation also requires ride-sharing companies to design their mobile applications in a way that restricts trips exceeding the distance limits.

The amended regulation redefines ride-hailing as passenger transport conducted through vehicles using an online system. It has also removed a controversial provision from the earlier version of the guidelines that required vehicles to paste an “RS” sticker to identify ride-sharing services.

Muna Adhikari, spokesperson for the Gandaki Province Ministry of Physical Infrastructure Development and Transport Management, said the guidelines have come into effect.

“The objective is to properly regulate and manage the transport system,” Adhikari said. She added that distance limits for both two-wheelers and four-wheelers were introduced to ensure that ride-sharing is used mainly for short trips and to help manage traffic congestion.

Alongside ride-sharing, Gandaki Province has also formally introduced regulations for self-drive services, a business that has expanded rapidly in Pokhara, Nepal’s tourism capital, and has seen strong commercial success in recent years.

Under the self-drive regulation, Nepali citizens and foreigners holding valid driving licences are allowed to hire two-wheelers or four-wheelers for a fixed period. Service providers are permitted to charge rates determined by the government.

As per the rules, self-drive two-wheelers must display a sticker bearing the “SD” sign in English, printed in red on a black background. The sticker must either have a diameter of 5 centimetres or feature an “SD” sign measuring 3 centimetres in height and 1.5 centimetres in width.

For four-wheelers, the regulation requires an “SD” sign sticker on a black background with a 15-centimetre diameter. Alternatively, the “SD” lettering within the sticker must measure 11 centimetres in height and 1 centimetre in width.

Public transport service providers have long opposed ride-hailing services, arguing that private vehicle owners should not be allowed to transport passengers for a fee.

On May 15 last year, Gandaki Province had first published the Ride-sharing (Regulation and Management) Regulation 2025 in its Gazette. Expressing dissatisfaction, public transport entrepreneurs and workers launched protests, halting transport services across the province.

Operating under the banner of the “Public Transport Protection Struggle Committee,” the protesters put forward three key demands: complete withdrawal of the Ride-sharing Regulation 2025, clear and firm government policies on public transport operations and vehicle imports, and mandatory implementation of a contribution-based social security fund for workers in the transport sector.

The protests led to the shutdown of public transport services across major cities, including Kathmandu, Pokhara and Bharatpur, causing widespread disruption and public outrage.

In June, following a request from the federal government, the Gandaki government decided to postpone enforcement of the ride-sharing regulation by a month. Later that month, the Supreme Court issued an interim order allowing the province to proceed with implementation of the Ride-sharing (Regulation and Management) Rules 2025, rejecting demands for a suspension of the policy.

While Gandaki has now moved ahead with implementation, Bagmati Province remains without a ride-sharing guideline. Officials say there is no indication that the regulation will be introduced anytime soon, as it does not fall under the province’s current priorities.

Bagmati Province began drafting ride-hailing guidelines nearly three years ago, but frequent changes in government have repeatedly stalled the process.

In the absence of clear regulations, a large number of commuters are being cheated daily in terms of pricing and safety, with no dedicated agency to hear grievances or address complaints. Complaints of bad behaviour, unfair pricing and exploitation—especially during emergencies or peak hours—have increasingly damaged public trust in ride-hailing services.

The Supreme Court has recognised ride-hailing as a legitimate service, citing its employment potential and direct access to users. In 2023, the government amended the Industrial Enterprises Act to officially recognise ride-sharing companies as legal business entities.

In January, the Supreme Court issued a directive ordering the government to expedite ride-hailing legislation. However, frequent changes in government and the impact of the recent Gen Z movement are being blamed for delays in formulating and implementing comprehensive ride-hailing guidelines.

In February 2024, the government amended the Industrial Enterprises Act (2020), formally recognising ride-hailing as a service-oriented business and granting it legal status after seven years of operation in Nepal. Despite this, detailed operational guidelines are still not in effect in key provinces.

Frustrated at unreliable public transport, many residents of Kathmandu Valley have come to rely heavily on ride-hailing services for daily commuting. However, passengers complain that they are often overcharged and exposed to safety risks, particularly during offline rides that operate outside app-based monitoring systems.

Ride service providers say the absence of clear guidelines makes it difficult to address persistent problems such as offline rides, unregulated fares and accountability gaps, underscoring the urgency for provinces like Bagmati to move forward with long-pending regulations.