Nepal moves to regulate ride-sharing, ride-hailing after nearly a decade

After nearly nine years of unregulated growth, the government has, for the first time, formally defined ride-sharing and ride-hailing services in Nepal, signalling a major step toward bringing digital mobility platforms under a unified regulatory framework. The proposed Digital Mobility Service Operation Standards, 2026, published by the Ministry of Physical Infrastructure and Transport for public consultation, lays out definitions, licensing procedures, fare ceilings, safety provisions and compliance mechanisms for operators. According to the draft, ride-sharing refers to multiple passengers sharing a vehicle while travelling in the same direction to improve efficiency, reduce costs and minimise traffic congestion and environmental impact. Ride-hailing, meanwhile, is defined as booking a vehicle—either with or without a driver—through a digital platform for private use, with integrated payment and tracking features. Prepared by the Department of Transport Management, the draft also introduces the broader concept of “digital mobility service”, encompassing app-based or web-based transport services that connect passengers with vehicles on demand. The proposed framework requires all service providers to obtain permission from the department and register in a centralised digital system designed to oversee operations nationwide. Applications can be submitted either in person or online, and licences will be issued after verifying legal and technical compliance. Under the draf