Nepal’s New Ride Sharing Law: Rs 25/km for Bikes and Rs 55/km for Cars Set to Standardize Market Rates

The Nepal government, through the Department of Transport Management (DoTM), has finalized the Digital Mobility Service Operation Standard 2026 to legally regulate the country’s booming ride sharing sector. This nationwide framework, introduced following repeated Supreme Court directives, establishes strict operational guidelines for both platforms and riders. Under the new rules, all ride sharing vehicles must be registered as "Digital Mobility Services" and are prohibited from being older than 15 years. As per the new rules price for two wheelers is set to maximum of Rs. 25 per kilometer and for four wheelers maximum of Rs 55 per kilometer.  Drivers are required to have held a valid license for at least one year and must be enrolled in the Social Security Fund. The regulation also introduces price stability by capping surge pricing at 30% for two wheelers and 40% for four wheelers, while limiting the commission platforms can take from drivers to a maximum of 10%.

To enhance passenger safety, the DoTM now mandates that all vehicles display a government issued QR sticker for instant verification and requires apps to include a direct SOS link to police stations. Additionally, four wheelers must be equipped with GPS tracking, dash cams, and fire extinguishers. A dedicated "Traffic Accident Fund" will also be established, funded by a 1% deduction from every trip fare and a 0.5% contribution from platform revenue, providing up to Rs 1 million in compensation for major accidents. These standards aim to unify the varying provincial rules and formally integrate ride sharing into Nepal’s public transport system.