Ride-sharing firms limited to 300 four-wheelers, mandatory fare discounts introduced

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KATHMANDU: The Gandaki Province Government has capped the number of four-wheelers a single ride-sharing company can register at 300 units. The provision has been introduced through an amendment to the ‘Gandaki Province Ride-Sharing (Regulation and Management) Regulations 2025.’

The amended regulation, approved by the provincial cabinet on April 25, 2026, was published in the provincial gazette on Thursday.

According to the revised rule, a company can obtain an operating license for up to 300 four-wheelers registered under its ownership or listed under partner vehicle owners. The government said the provision was introduced to prevent monopoly by a single ride-sharing company. No such limit has been set for two-wheelers.

However, companies already operating more than 300 vehicles as taxi services before the regulation came into effect will be allowed to continue with the existing fleet size. Firms with fewer than 300 vehicles can expand up to the new limit.

The provincial government has also continued the restriction on private four-wheelers with red number plates from operating under ride-sharing services.

The original regulation introduced in May 2025 had allowed both public and private vehicles to operate in ride-sharing services. The rule was later suspended following protests from transport operators and intervention from the federal government.

After a revision made in February 2026, only public vehicles with black number plates were allowed to provide ride-sharing services. The same provision has now been retained. However, two-wheelers with red plates can still operate under ride-sharing platforms.

The new rule also states that vehicles with more than five seats, including the driver, will not qualify for ride-sharing services under black plate registration.

The amended regulation has introduced a new definition for ride-sharing rental cars. Under the provision, only four-wheelers with five seats, including the driver, can be registered as ride-sharing rental cars.

Such vehicles will not be allowed to use ‘Taxi’ branding. The regulation also states that fare calculation will be handled through mobile applications, eliminating the need for physical taxi meters.

Vehicles registered for ride-sharing purposes cannot be used for private purposes.

The revised rule has removed the mandatory requirement for self-drive operators to use their own ride-sharing app. Self-drive services can now operate without an app-based system.

Existing ride-sharing, self-drive, and app-based transport operators must obtain official registration and operating permits within 30 days after the government publishes fare rates.

Ride-sharing companies will now be required to provide passengers at least a 10 percent discount on fares fixed by the provincial government.

For public electric vehicles, the mandatory discount has been set at 15 percent.

The regulation also warns that companies charging fares above the approved rates will face legal action under prevailing laws.

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