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Nepal Introduces New Ride Sharing Law, Caps Rates at Rs 25/km for Bikes and Rs 55/km for Cars

Nepal government enforces a new digital mobility framework, fixing ride-sharing fares, limiting commissions, and introducing strict safety and operational standards.

Nepalytix
5 min read
Nepal Introduces New Ride Sharing Law, Caps Rates at Rs 25/km for Bikes and Rs 55/km for Cars

The Government of Department of Transport Management (DoTM) has officially introduced the Digital Mobility Service Operation Standard 2026, marking a major step toward regulating Nepal’s rapidly expanding ride-sharing industry.

The new regulation, implemented following directives from the Supreme Court of Nepal, establishes a unified legal framework for ride-sharing platforms and drivers across the country.

Under the new rules, all ride-sharing vehicles must be registered under "Digital Mobility Services" and must not exceed 15 years of age. The government has also introduced standardized fare limits, setting a maximum rate of Rs 25 per kilometer for two-wheelers and Rs 55 per kilometer for four-wheelers.

To ensure fairness in pricing, surge pricing has been capped at 30% for bikes and 40% for cars. Additionally, ride-sharing platforms are restricted to charging a maximum commission of 10% from drivers.

Driver eligibility has also been tightened. Drivers must have held a valid license for at least one year and are required to be enrolled in the Social Security Fund, strengthening financial protection and accountability.

Passenger safety is a key focus of the new regulation. All vehicles must display a government-issued QR code for instant verification, while ride-sharing apps are required to include an SOS feature directly connected to nearby police stations. For four-wheelers, mandatory safety equipment now includes GPS tracking systems, dash cameras, and fire extinguishers.

Furthermore, the government will establish a "Traffic Accident Fund" to support victims of road accidents. The fund will be financed through a 1% deduction from each trip fare and a 0.5% contribution from platform revenues, offering compensation of up to Rs 1 million in serious cases.

This new framework aims to standardize previously fragmented provincial rules and formally integrate ride-sharing services into Nepal’s public transportation system.

Nepalytix

Financial News Reporter

Nepal Introduces New Ride Sharing Law, Caps Rates at Rs 25/km for Bikes and Rs 55/km for Cars | Nepalytix