The self-immolation and subsequent death of Ganesh Nepali, a ride-sharing driver, has brought renewed attention to the precarious working conditions faced by thousands of workers in Nepal’s rapidly expanding digital gig economy.

Working at their own expense and risk, ride-sharing drivers navigate Kathmandu’s streets without any guarantee of a minimum income while facing mounting financial pressure, traffic enforcement and limited legal protection. Experts say Nepal’s labour laws have failed to keep pace with platform-based employment, leaving gig workers caught between traditional employment regulations and rapidly evolving digital business models.

Sujan Magar, a Pathao rider for the past two-and-a-half years, said the incident outside the Department of Passports has left many drivers shaken.

“Who can say the same thing won’t happen to us?” Magar said. “These days, I am afraid to even go out on the road. Whenever I head towards Sundhara or Bagbazar and see traffic police, my heart sinks.”

He said recent proposals to increase traffic fines and tighten enforcement have disproportionately affected ride-sharing and delivery workers.

“Reports that traffic police are collecting millions of rupees in fines every day frighten us,” he said. “Roadside checks have become much stricter. We travel the same routes several times a day, and every trip comes with the fear of being stopped.”

Drivers have also voiced frustration on social media, saying they are often fined while picking up or dropping off passengers and that they are frequently subjected to rude treatment by traffic police.

A profession many describe as a burden

Taxi driver Ram Thapa said driving in Kathmandu has become increasingly difficult.

“Working as a driver in Kathmandu—or anywhere in Nepal—now feels like a curse,” he said. “Drivers face hardships from every direction, and earning a living through this profession is becoming more painful by the day.”

Many drivers are equally dissatisfied with ride-sharing platforms such as Pathao, InDrive and Yango. They argue that the companies treat them merely as income-generating partners while distancing themselves whenever drivers face hardship.

Muktinath Phuyal, founding chairperson of the Independent Drivers Foundation, said Ganesh Nepali’s death reflects the pressures faced by hundreds of drivers.

“He had recently bought a new motorcycle on loan and was supporting both his family and his ailing mother,” Phuyal said. “When city police clamped his vehicle and attempted to fine him Rs1,000, he could no longer bear the pressure. That became the trigger. His death reflects the suffering of the entire driving community.”

According to Phuyal, increasing competition among ride-sharing platforms has pushed fares down by as much as 60 percent over the past two years.

“While passengers benefit from cheaper fares, drivers bear the cost,” he said. “Fuel prices, inflation and maintenance expenses continue to rise. Companies deduct commissions of 10 to 15 percent, and now the government has introduced additional taxes. The amount drivers actually take home keeps shrinking.”

He warned that while Ganesh Nepali lost his life, many other drivers are struggling with severe mental stress and depression.

Phuyal also argued that the absence of clear legislation governing ride-sharing services allows companies to determine fares unilaterally while leaving drivers vulnerable to both commercial exploitation and strict law enforcement.

Tax burden and platform accountability

The government has proposed bringing ride-sharing services formally into the tax system through the fiscal year 2026-27 budget and Finance Bill.

The proposed amendments introduce a five percent value-added tax on ride-sharing services and a mandatory one percent withholding tax on drivers’ earnings. Drivers say the additional taxes will further reduce their already modest income.

Yeshu Thakali, managing director of Pathao Nepal, said regulation alone would not solve the problem.

“It is reasonable to prohibit parking in certain places, but the government must also provide designated pick-up and drop-off areas,” he said. “Instead of relying solely on stricter enforcement, the state should invest in infrastructure and practical alternatives. We continue to support and educate our riders, but the government’s role is equally important.”

When Kantipur contacted the three major ride-sharing companies about Ganesh Nepali, each said he was not an active driver on its platform.

Based on his recent trip records and prolonged inactivity, the companies said they had no direct operational involvement in the incident.

Santosh Pandey, head of Yango Nepal, said Nepali was not an active driver on the platform.

An InDrive representative said Nepali had completed only around 300 trips through the app, describing him as a part-time driver who may have been accepting rides outside the platform.

Drivers and transport unions criticised the companies for distancing themselves from Ganesh’s death.

Magar said platform companies routinely deny responsibility whenever drivers encounter serious problems.

“Whenever something happens, the companies simply say the driver wasn’t active or wasn’t online at the time,” he said. “If our names and numbers remain registered on their platform and we continue to use their services, they should at least acknowledge some moral responsibility.”

The compulsion of offline rides

Drivers say accepting rides outside the apps is often driven by necessity rather than choice.

“Operating offline isn’t ideal,” said one driver from Lamatar. “But when there are no bookings through the app and you don’t even have money for fuel, you’re forced to take the risk.”

He said inadequate parking facilities compound the problem.

“There are hardly any designated places to pick up or drop off passengers. Even when we stop briefly, police sometimes seize our keys and treat us disrespectfully.”

He also said steep traffic fines have become unaffordable.

“My motorcycle is worth around Rs50,000 to Rs60,000. If I’m fined Rs10,000 or Rs15,000, it becomes impossible to recover financially.”

A growing policy gap

Manohar Adhikari, a digital economy expert and founder of Foodmandu, said Nepal’s labour laws need to be updated to reflect the realities of platform-based employment, including ride-sharing, food delivery, courier services, online commerce and virtual assistance.

“The digital gig economy offers flexibility and independence,” Adhikari said. “But it also comes with significant drawbacks. Gig workers have no guaranteed income or job security, and that financial uncertainty can have serious consequences.”

He also questioned whether existing social protection mechanisms adequately serve short-term gig workers.

According to Adhikari, enrolling temporary workers in the Social Security Fund often provides little immediate benefit because they cannot access their contributions until retirement.

“A person may work for only a few months, but the contributions remain locked away until the age of 60,” he said. “Workers therefore do not feel they are receiving any tangible benefit. We need more practical policies that reflect the nature of gig work.”

Ganesh Nepali’s death has exposed the systemic challenges facing Nepal’s platform economy. Drivers say aggressive price competition among companies has driven down earnings while shifting nearly all financial risks onto workers. At the same time, the absence of a clear regulatory framework has left drivers without adequate labour protections or social security.