Kathmandu, Nepal – Nearly a year after the government recognized ride-hailing services as a legal industry, the much-anticipated guidelines for regulating this sector remain in limbo. The delay, attributed to political changes, has left consumers vulnerable to price gouging and safety concerns.

In February 2023, the government amended the Industrial Enterprises Act, granting legal status to ride-hailing services. However, the lack of specific guidelines has created a regulatory vacuum, allowing companies to operate with little oversight.

Consumers have reported exorbitant fares, particularly during peak periods and holidays. The lack of standardized pricing and quality control measures has led to widespread dissatisfaction. Additionally, safety concerns persist, as many drivers operate without proper background checks or insurance.

"The government changed when the ride-hailing guidelines were tabled for approval. Now the new government is reviewing the draft again," said Balram Niraula, secretary at the Ministry of Labour, Employment, and Transport, Bagmati Province.

The delay in implementing the guidelines has also hindered the growth of the ride-hailing industry. Companies like InDrive and Pathao have expanded their operations in Nepal, but the absence of a clear regulatory framework has limited their potential.

While the government has acknowledged the need for regulation, concrete steps have been slow to materialize. The public, eager for a reliable and affordable transportation option, continues to face the consequences of the regulatory gap.

Experts argue that a robust regulatory framework is crucial to ensure the safety and well-being of both passengers and drivers. It should address issues such as driver licensing, vehicle inspections, fare transparency, and consumer protection.

As the government grapples with the challenges of implementing effective regulations, the ride-hailing industry in Nepal remains a work in progress. The hope is that the authorities will prioritize this issue and introduce timely guidelines to safeguard the interests of all stakeholders.

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