Kathmandu, March 4, 2025 — The Nepalese government is considering a new licensing system exclusively for ride-sharing drivers operating under platforms like Pathao and InDrive. The move comes as part of an effort to regulate the rapidly expanding ride-hailing industry and address safety, taxation, and operational concerns.
According to sources from the Ministry of Physical Infrastructure and Transport, discussions are underway to introduce a special category of driving licenses tailored for ride-sharing drivers. This step aims to ensure that drivers meet specific safety and service standards while also bringing these services under legal scrutiny.
Regulatory Challenges and Government Initiatives
The ride-sharing industry in Nepal has grown significantly in recent years, providing thousands of jobs and offering commuters an alternative to traditional taxis. However, the sector has faced regulatory hurdles, with concerns over passenger safety, pricing mechanisms, and taxation.
In February 2024, the Bagmati Provincial Government collaborated with federal authorities to draft a regulatory framework for ride-sharing services. The proposal aimed to register private vehicles used for commercial ride-hailing, ensuring proper tax contributions and enforcing safety regulations.
Similarly, in December 2024, the Supreme Court of Nepal issued a directive to the government, urging it to create a legal structure for ride-sharing services. The court emphasized the importance of passenger safety and the need to accommodate all citizens, including women and individuals with disabilities, within the transport system.
What the New License System Could Mean
If implemented, the separate licensing system could require Pathao and InDrive drivers to obtain special permits, similar to those held by taxi and public transport drivers. This may involve additional training, background checks, and compliance with set fare structures.
Experts believe this move could professionalize the industry, improve service quality, and offer better protection for passengers. However, drivers worry about potential bureaucratic hurdles and additional costs associated with the new licensing process.
Ride-sharing companies have yet to issue formal statements on the proposed changes, but insiders suggest they are in talks with government officials to find a middle ground that balances regulation with the flexibility these services offer.
Implementation Timeline Still Unclear
While discussions continue, no official timeline has been set for implementing the new licensing system. The government is expected to hold consultations with stakeholders, including ride-sharing companies, drivers, and consumer groups, before making a final decision.
For now, Pathao and InDrive drivers continue to operate under existing general driving licenses, with authorities closely monitoring developments in the sector.