Uber, an American multinational transportation company that provides ride-hailing services, courier services, food delivery, and freight transport worldwide, plans to foray into the Nepali market, further heating up the already competitive local landscape, at least four sources privy to the matter said.

The company, headquartered in San Francisco, plans to enter service within a month, according to them.

Uber operates in approximately 70 countries and 15,000 cities worldwide. It is the largest ride-sharing company globally, with over 202 million monthly active users and 10 million active drivers and couriers.

It coordinates an average of 42 million trips and delivery orders per day, and has facilitated 72 billion trips and delivery orders since its inception in 2010.

Six to seven officials from Uber met representatives of a few ride-hailing platforms operating in Nepal, along with some private sector leaders, a few weeks ago—a courtesy call signalling its imminent entry, likely within a month.

One of the ride-hailing platform officials, who wished not to be named, said the company had been trying to enter Nepal since 2016. “But the frequent change in government and limited understanding of ride-hailing services within Nepal’s administration prevented them from entering the market.”

Nepal allows 70 percent foreign direct investment in ride-hailing services. A minimum of 30 percent local investment is required to establish a company in Nepal, and Uber has been searching for Nepali partners.

The Department of Industry said that Uber has not submitted any application as of Friday.

“We have also heard that Uber is coming to Nepal,” said Prashant Bohara, director of the Foreign Investment and Technology Transfer Section at the Department of Industry. He added that the government has made it easier for IT-related investments in Nepal.

The minimum investment threshold for foreign investment remains at Rs20 million per investor, reduced from Rs50 million in 2022.

However, this threshold does not apply to IT-related projects, which can be approved without a minimum ceiling.

Insiders say that while Uber’s entry is welcome, the market is already nearing saturation.

“In a market like the Kathmandu Valley, only three to four ride-hailing platforms can be sustainable businesses,” said an official from a ride-hailing company. “Competition is good for consumers, but sustainability remains the key question.”

There are around 30 ride-hailing services in Nepal, including those providing cargo services.

The popularity of ride-sharing platforms in markets like Nepal—where public transportation has long been unreliable—has surged. The rise in the number of platforms has intensified competition in both service quality and pricing.

“It is true that Uber is trying to enter the Nepali market,” said a government official closely observing the development. “They have conducted a market study for the past three to four months.”

Nepal has been delaying the formulation of laws to govern ride-hailing services despite multiple court rulings.

With Uber’s growing interest, insiders say the federal government is preparing to introduce interim standards for ride-hailing services—a stopgap measure as comprehensive legislation continues to face delays.

The Department of Transport Management has drafted the Digital Mobility Service Operation Standard 2026 and forwarded it to the Ministry of Physical Infrastructure and Transport two weeks ago for further discussion.

Officials say the standards could be enforced within the next two weeks if approved.

“As the Supreme Court ordered the regulation of ride-sharing businesses, we began drafting the standards,” said Ganeshman Rai, information officer at the department. “Once the ministry approves the draft, we will implement it through a public notice.”

Despite rapid growth in ride-hailing services, the government has repeatedly delayed enacting laws to regulate the sector, even after multiple court directives.

In February 2020, the Patan High Court ordered the government to bring ride-hailing services under regulation. Six years on, there has been little progress. In January last year, the Supreme Court reiterated the urgency of introducing legislation to ensure legal oversight of the expanding industry.

“Nepal has had several international and domestic ride-sharing platforms operating for years, but existing transport laws do not address the sector,” Rai said. “The draft standard aims to regulate and streamline these services.”

The proposed framework expands beyond traditional ride-sharing definitions, incorporating emerging concepts such as ride-hiring and ride-pooling. It focuses on improving safety, security, and technological integration within the transport sector.

Key provisions include measures for rider and driver safety, such as social security protections for drivers, mandatory CCTV systems in four-wheelers, and GPS tracking.

Ride-hailing has grown rapidly in Nepal, particularly in Kathmandu, where companies estimate that more than 200,000 riders are engaged in the sector—highlighting its rising importance in the gig economy.

However, policy implementation is lagging. The government’s policies and programmes for the fiscal year 2022-23 had pledged to introduce a ride-sharing law, but the Office of the Auditor General says the commitment remains unfulfilled.

Both international and domestic platforms are currently operating in Nepal. Major international players include Pathao, inDrive and Yango, while local services such as ZumZum, Sajilo and La Basham are also active.

Ride-hailing services first entered Nepal in 2017 with the launch of Tootle, a homegrown app.

The market expanded in 2018 with Pathao’s entry, followed by inDrive in 2022, even as the sector continued to operate in a legal grey area.