Gandaki Province Legalises Ride-Hailing Service, Allows Private Vehicles to Carry Fare-Paying Passengers

The Gandaki provincial government has formally legalised ride-hailing services, paving the way for private vehicles to carry fare-paying passengers through app-based platforms.

The decision was taken by the provincial cabinet on January 18, approving amendments to existing transport regulations to allow private vehicles to operate ride-hailing services.

Provincial government spokesperson Tekraj Gurung said private vehicle owners can now register with the Ministry of Physical Infrastructure and Transport and provide ride-hailing services through digital applications. He clarified that vehicles offering such services will not require separate number plates or special identification marks.

“The amendments have removed ambiguities in the regulations to better manage ride-hailing services,” Gurung said, adding that the earlier mandatory provision requiring vehicles to display a logo for identification has also been revised.

According to Gurung, transport offices will formally begin the vehicle registration process for ride-hailing after issuing a public notice following the elections.

Under the revised framework, vehicles registered for ride-hailing may also be used for personal purposes, with owners free to offer services when convenient.

The provincial government had earlier endorsed similar regulations through a cabinet decision on May 13, but implementation was halted after the federal government raised objections. Strong opposition from transport entrepreneurs had prompted the federal authorities to issue a circular directing an immediate suspension of the rules. Citing constitutional provisions on coordination and cooperation between governments, Gandaki Province temporarily paused the process before revising the regulations.

The amended rules provide for licensing and renewal requirements for companies offering ride-hailing services. They also expand the operational limits for vehicles. Four-wheelers, which were earlier allowed to operate only within a 20-kilometre radius, can now provide services up to 50 kilometres, while two-wheelers will be permitted to operate within a 20-kilometre range.

Only four-wheeler vehicles with a seating capacity of five to seven seats will be eligible for registration under the ride-hailing scheme.

The province has also revised service and licensing fees. The annual service fee for two-wheelers has been reduced to Rs 2,500 from Rs 5,000, while the fee for four-wheelers has been cut to Rs 10,000 from Rs 20,000. Ride-hailing companies will be required to deposit 2 percent of each transaction into the provincial consolidated fund.

Under the licensing structure, permit fees have been set at Rs 25,000 for two-wheelers, Rs 50,000 for four-wheelers, and Rs 70,000 for companies operating both services. Vehicle owners, apart from service providers, will also be required to pay separate registration and renewal fees based on engine capacity.

In July last year, the provincial government had stopped unauthorised ride-hailing operations in Pokhara, citing violations of existing transport laws. Transport entrepreneurs had protested against private vehicles with red number plates carrying passengers, arguing that such practices violated the Motor Vehicles and Transport Management Act, 1992.