Permit Process Begins for Ride-Sharing; Crackdown on Unauthorized Ride-Sharing Apps Underway

July 23, Pokhara — The Gandaki Province government amended the Ride-Sharing and Self-Drive Regulation for the third time in April, easing conditions for existing four-wheeled taxi and small vehicle operators. The amendment allows only black-number-plated four-wheelers to operate as ride-sharing vehicles, replacing the earlier red-number-plate registration system.

Under the new regulations, a single company can be permitted to operate up to 300 vehicles for ride-sharing, either owned or managed by other owners. However, companies previously registered as taxi service providers in Gandaki Province can apply for permits only up to the number of vehicles they currently operate.

This amendment is designed to protect the interests of existing taxi operators. Although new registrations require a minimum fleet size of 300 vehicles, existing businesses are also allowed to continue under the rules.

The government originally issued the regulation at the end of April 2025 (Baisakh 2082 BS) after long discussions with operators. Following the issuance, transport businesses staged a nationwide strike in mid-June, crippling services. The federal government requested a one-month suspension, after which Chief Minister Surendra Raj Pandey facilitated dialogue with stakeholders and announced that regulations would be issued only after thorough consultations.

As a result of consultations, ride-sharing operations on four-wheeled vehicles now require black number plates and official permits obtained through ride-sharing apps. Permitted vehicles may not be used for other purposes. Despite this, many taxi operators in Pokhara remain reluctant to apply for ride-sharing permits.

Two-wheeled vehicle companies such as InDrive and Pathao continue to operate illegally by charging unauthorized fees. Traffic police have been taking action against these vehicles, but illegal operations remain active.

Dhaka Sharma, head of the Transport Management Office in Kaski, confirmed that strict action will be taken against any company continuing service without proper permits despite the formal regulations being in place to legalize ride-sharing.

The Ministry of Physical Infrastructure and Transport issued a call for applications for ride-sharing service registration on July 2 (Asar 18), with a deadline of July 30 (Shrawan 15). Companies failing to apply by then will face penalties.

According to the ride-sharing regulation, failure to submit documents will result in penalties under Rule 7. The permit fees are set at NPR 25,000 for two-wheelers and NPR 50,000 for four-wheelers.

The total registration fee for both two-wheeled and four-wheeled vehicles is NPR 70,000. In addition, the Gandaki Province Finance Act stipulates fixed annual fees of NPR 2,500 per two-wheeler and NPR 10,000 per four-wheeler. Public taxi operators will receive a 50% discount on these fees. To date, no applications have been received for four-wheeled or self-drive ride-sharing permits, Sharma stated.

Sawari Sewa Nepal: First Company Granted Permit in the Country

Until now, no ride-sharing company operating nationwide had received an official permit from the government. The federal government and most provinces have yet to enact legislation addressing ride-sharing services.

Under the Transportation Management Act issued by Gandaki Province in 2019 (2076 BS) and the subsequent April 2025 regulations, Sawari Sewa Nepal Pvt. Ltd. became the first company authorized to legally operate ride-sharing services in compliance with the law.

This company has already received approval to operate 20 four-wheeled vehicles for ride-sharing and is preparing to apply for permits for an additional 100 vehicles.

Other companies that have submitted applications include Sajilo Nepal Pvt. Ltd., Ecomo Nepal, James Green Electro Mobility Service Pvt. Ltd., and Move In Nepal Pvt. Ltd.

Office chief Dhaka Sharma said, ‘We will take strict actions against ride-sharing vehicles operating without permits by July 30. The Chief Minister has instructed the strict enforcement of these regulations.’

Although a monitoring committee headed by the Transport Ministry’s Secretary has been formed, enforcement, oversight, and penalties remain weak in public transport management.

Chief Minister Pandey has directed quick development of legal ride-sharing app services and stern action against illegal operators.

Permitted ride-sharing vehicles are forbidden from use for any other purpose. Meter installations and taxi identification signs are also prohibited for app-based services.

However, complaints continue about unauthorized taxi fare manipulations by operators without permits in Pokhara.

Service providers must pay the province’s treasury 1% of each transaction’s revenue, currently submitted through monthly self-reporting by drivers or owners.

To ensure data accuracy, a two-member expert team will audit app-related financials after the fiscal year and submit reports within 75 days.

The province offers a 10% discount on fees and up to 15% discounts for public electric vehicle operators.

Originally, the regulation allowed travel distances of up to 20 kilometers for two-wheelers and 50 kilometers for four-wheelers.

Operating without registration permits carries fines of up to NPR 100,000, with penalties doubling for repeat offenses. Offline operations will incur a fine of NPR 4,000 for two-wheelers and NPR 10,000 for four-wheelers.