Global ride-hailing giant Uber announced on Friday its official entry into the Nepali market, becoming the fourth international ride-hailing platform operating in the country.

The company has partnered with Taximandu to launch its services and is currently testing different business models to determine what works best in Nepal.

According to Uber officials, the company is evaluating both subscription-based and commission-based models. In India, Uber operates a subscription model under which drivers pay a fixed fee to use the platform and retain the full fare from trips, while the company does not charge commissions. In Nepal, both approaches are being tested.

Foreign travellers are expected to be a key part of Uber's strategy in the country.

Akanksha Singh, Uber's head of International Markets for South Asia, said the company does not yet have a representative office in Nepal but plans to establish a local presence by the end of the year.

She said users visiting Nepal from countries where Uber already operates, including India and the United States, can use the same Uber app without downloading a separate application.

Singh added that Uber sees significant opportunities to expand beyond ride-hailing.

“There is a lot of potential in terms of different products that we can launch. There is courier, food delivery and intercity travel, which is a very big opportunity. All of this is something that we are evaluating at this stage,” she said.

The company said it has received strong interest from drivers since opening registrations.

“Almost 2,500 drivers have connected with us within less than a week, including both two-wheelers and four-wheelers. More than 20,000 drivers attempted to download the app,” Singh said.

She added that Uber is making a significant investment in Nepal and has already begun the process of registering its local operations.

Speaking at the launch event in Kathmandu, Dominic Taylor, Uber's vice-president and regional general manager for Rides in Asia-Pacific, said the company had originally planned to enter Nepal a decade ago but postponed the move.

“As Nepal has a new youth-led government and is also preparing ride-sharing legislation, we believe this is the right time to enter the Nepali market,” he said.

Taylor said Nepal's growing tourism industry was one of the key reasons behind Uber's decision.

“We looked at markets where we could create the most value and where there is significant growth potential. Nepal attracts a large number of tourists every year, many of whom come from countries where Uber already operates, such as India and the United States,” he said.

He noted that motorcycle ride services could become Uber's largest segment in Nepal, citing the company's extensive experience in similar markets, including Brazil, India, Sri Lanka and Bangladesh.

Addressing competition, Taylor said Uber was confident it could compete with both international and local ride-hailing companies already operating in Nepal.

“This is not a short-term relationship. We are entering Nepal with a long-term commitment and intend to be here for the next decade and beyond,” he said.

Taylor also said Uber could play a major role in job creation in Nepal over the coming years through partnerships with drivers and fleet operators.

“We are proud to officially announce Uber's launch in Nepal. With this launch, Nepal becomes Uber's 10th market in the Asia-Pacific region,” he said.

According to Taylor, Nepal's growing urbanisation, expanding digital ecosystem and increasing adoption of technology make it an attractive market for the company.

“When we look at Nepal, we see a country with enormous potential that is embracing change through a growing tech-savvy population. Mobility is about far more than getting from one destination to another—it underpins how cities function and how economies grow,” he said.

“Nepal is not simply another pin on the global map for us. We see a country with a strong mobility future, where digital platforms, urban transformation and consumer experience are converging in exciting ways.”

Ramkrishna Lamichhane, director general of Nepal's Department of Tourism, welcomed Uber's arrival, saying improved connectivity is vital for tourism growth.

“We believe that the arrival of globally recognised ride-hailing companies like Uber will play an important role in Nepal's tourism sector,” he said.

Lamichhane said increased competition among ride-hailing providers could improve service quality and offer more competitive fares for passengers.

He also expressed hope that Uber would contribute international expertise to help modernise Nepal's transportation system and strengthen passenger safety.

Chelan J Bliss, head of Consular Affairs at the US Embassy in Nepal, said American investment supports Nepal's ongoing digital transformation.

“When US companies invest in Nepal, they bring not only services but also capital, technology and opportunities that benefit the wider economy,” she said.

Bliss said Uber's decision to make Nepal its newest Asia-Pacific market reflects confidence in the country's economic and digital future.

“Nepal is changing rapidly. Its cities are growing, its young population is connected, ambitious and ready to engage with the global economy, and its digital infrastructure continues to expand. Uber's launch is a vote of confidence in Nepal and in the Nepali people,” she said.