The government led by Balendra Shah had pledged to fast-track regulations for Nepal's rapidly expanding ride-hailing industry. Instead, the proposed framework has become mired in the same delays that stalled previous administrations.

Government officials involved in the process say the draft has been held up by disagreements over fare caps, commission limits and the use of privately registered vehicles, with ride-hailing platforms, transport operators and other stakeholders unable to reach a consensus.

More than three months after the proposed Digital Mobility Service Operation Standards, 2026 reached the Ministry of Physical Infrastructure and Transport, it remains under review.

The government has struggled to reconcile competing interests before granting final approval, at least three officials familiar with the process told the Post.

A senior official at the Department of Transport Management said the draft is still undergoing consultations at the ministry.

"The digital mobility sector is technically complex, and every stakeholder—from ride-sharing companies and drivers to transport operators—has its own concerns. Reaching a consensus has therefore become difficult," the official said on condition of anonymity.

"While addressing the concerns of service providers and drivers, we must also protect consumers' rights."

According to officials, discussions have focused primarily on fare structures, commission rates and other operational provisions with major ride-hailing platforms, including Uber, Yango and other operators.

Under the proposed standards, the government plans to cap base fares at Rs25 per kilometre for two-wheelers and Rs55 per kilometre for four-wheelers. Night fares could rise by up to 20 percent, depending on operating conditions.

The draft also limits the commission digital platforms can charge to a maximum of 10 percent of each fare, with the remainder going to drivers.

"The ministry even proposed implementing some of the pricing provisions on a trial basis, but most ride-hailing companies opposed the idea, citing technical and financial complications," another department official said.

Another contentious issue is whether privately registered vehicles with red number plates should be allowed to provide commercial ride-hailing services.

Public transport operators have argued that if such vehicles are permitted to operate commercially, they should carry distinct identification markings.

Officials involved in drafting the standards say no consensus has been reached on the issue.

The Ministry of Physical Infrastructure and Transport published the draft for public consultation on April 20.

Prepared by the Department of Transport Management, the proposal defines ride-sharing and ride-hailing services for the first time in Nepal while establishing licensing procedures, fare ceilings, safety requirements and compliance mechanisms.

The draft introduces the broader concept of "digital mobility service", covering app-based and web-based transport platforms that connect passengers with vehicles on demand.

https://kathmandupost.com/money/2026/07/30/government-yet-to-finalise-ride-hailing-rules-as-disputes-over-fares-persist