KATHMANDU: Gandaki Province has officially opened registration for ride-sharing services, becoming the first province in Nepal to formally regulate the sector.
The Ministry of Physical Infrastructure Development and Transport Management has asked all ride-sharing operators in the province to complete registration by July 31.
The move follows the provincial cabinet’s approval of the second amendment to the Gandaki Province Ride-Sharing (Regulation and Management) Regulations, 2082, on April 25. The amended regulation came into effect after being published in the provincial gazette on May 14.
Among Nepal’s seven provinces, Gandaki is the first to officially implement ride-sharing registration. Although Koshi Province has introduced similar regulations, they have yet to be enforced. The federal government is also preparing a nationwide legal framework to bring uniformity to ride-sharing services across the country.
Under the new rules, a ride-sharing company can register a maximum of 300 four-wheeled vehicles to operate in Gandaki Province.
The provincial government introduced the cap to prevent market dominance by a single operator. No such limit has been imposed on two-wheelers.
However, companies that already operated taxi fleets before the regulation came into force will be allowed to retain their existing number of vehicles. Those with more than 300 taxis may continue operating their current fleet but cannot expand it further, while operators with fewer than 300 vehicles can increase their fleet up to the 300-vehicle limit.
Private four-wheelers barred from ride-sharing
The revised regulation prohibits privately registered (red number plate) four-wheelers from providing ride-sharing services.
The province had initially allowed both public and private vehicles to operate as ride-sharing vehicles when it introduced the regulation on May 15, 2025. However, the policy was suspended following nationwide protests and intervention from the federal government.
The amended regulation now allows only publicly registered (black number plate) four-wheelers to operate as ride-sharing vehicles. Privately registered cars and jeeps remain ineligible. However, privately registered two-wheelers can continue offering ride-sharing services.
Vehicles with more than five seats, even if they carry black number plates, are also barred from operating under the ride-sharing category. Such vehicles are not allowed to display “Taxi” signage.
Ride-sharing fares will be determined through digital applications, eliminating the need for conventional taxi meters.
Vehicles registered for ride-sharing services cannot be used for private purposes. However, self-drive rental vehicles will not be required to operate through an online ride-sharing application.
Existing ride-sharing operators, self-drive services and companies already providing transport services through their own digital platforms must obtain an operating license within 30 days after the provincial government publishes official fare rates.
Mandatory fare discounts
The amended regulation also requires ride-sharing companies to offer passengers a minimum 10% discount on fares fixed by the provincial government.
For public electric vehicles, operators must provide a 15% fare discount.
The regulation warns that companies charging fares above the government-approved rates will face legal action under existing laws.
