Latest Update (June 4, 2025): Transporters have withdrawn their strike after two days of nationwide disruption, following intense negotiations with government officials. However, the underlying conflict over ride-sharing regulations remains unresolved.
Gandaki Province's groundbreaking decision to legalize ride-sharing services has triggered Nepal's most significant transport crisis in recent years, with public transport operators launching an indefinite strike starting Monday that brought the entire nation to a standstill.
🚨 Current Crisis Timeline
May 15, 2025: Gandaki provincial government introduced the ride-hailing regulations 2025
May 30: The Gandaki Province Public Transport Protection Struggle Committee called a transport strike
May 31: Protesters displayed black flags on vehicles during a demonstration from 11:30am to 12:30pm
June 2-4: Nationwide public transport shutdown stranded passengers across the country, with very few public vehicles operating
June 4: Strike called off after government assurances
📜 What Makes This Law Historic?
Gandaki Province became the first to approve guidelines to legalise ride-sharing services in Nepal, establishing comprehensive regulations that include:
Registration Requirements
- Motorcycles: NPR 25,000 registration fee + NPR 12,500 annual renewal
- Four-wheelers: NPR 50,000 registration fee + NPR 25,000 annual renewal
- Mandatory passenger insurance and specific standards for private four-wheeled vehicles
Key Provisions
- Legal Recognition: Private red-plated vehicles can now operate commercially under ride-sharing services
- Vehicle Age Limit: 25-year mandatory scrapping rule for private vehicles
- Service Industry Classification: Ride-sharing officially recognized as part of the service sector
⚖️ Constitutional Battle
The core legal dispute centers around whether provinces have authority to regulate transport. Transport operators argue the move violates the Constitution and the Vehicle and Transport Management Act. However, government officials maintain that "ride-sharing was in practice, but not recognised by law" and their decision is "based on constitutional authority given to the provinces".
The provincial governments' move was in line with multiple directives from the Supreme Court, adding another layer of legal complexity to the dispute.
🔥 Why the Massive Protests?
Transport entrepreneurs launched unprecedented nationwide action because they believe:
Economic Threat
The government's new policy would displace traditional transport operators, creating unfair competition from private vehicle owners who don't face the same operational costs and regulations.
Legal Violations
Vehicle operators claim that provincial guidelines contradict the Motor Vehicles and Transport Management Act, specifically provisions that restrict private vehicles from commercial passenger transport.
Lack of Consultation
Despite submitting petitions and a formal seven-point demand, operators feel the government ignored their concerns before implementing the regulations.
🏙️ Impact on Daily Life
The transport strikes had devastating effects across Nepal:
- People in Kathmandu faced hardships due to the transport strike, with both long- and short-distance public vehicles affected
- Public transport operators suspended operations of taxis, buses, and freight services throughout the province
- Essential services disrupted nationwide for multiple days
🌟 The Bigger Picture
Why This Matters Beyond Gandaki
In Nepal, especially within the Kathmandu Valley, public transport has failed to provide a safe, inclusive, and dignified experience. The ride-sharing revolution represents a potential solution to chronic transport inadequacies.
Provincial Precedent
Bagmati Province is reviewing a draft regulation to bring ride-sharing services under provincial oversight and taxation, indicating this could become a nationwide trend.
🛣️ What's Next?
While the immediate strike has ended, fundamental questions remain:
- Federal vs Provincial Authority: Who has the ultimate say in transport regulation?
- Industry Transformation: How can traditional transport adapt to ride-sharing competition?
- Legal Harmonization: Will federal laws be amended to align with provincial initiatives?
The resolution of Gandaki's ride-sharing controversy will likely set the template for transport modernization across Nepal, making it one of the most significant policy battles in the country's recent history.
📈 Key Stakeholders
- Gandaki Province Government: Pushing for transport modernization and legal compliance
- Traditional Transport Operators: Fighting to preserve their livelihood and market position
- Ride-sharing Companies: Seeking legal recognition and operational clarity
- General Public: Caught between transport strikes and demand for better services
- Federal Government: Balancing provincial autonomy with national transport policy
The outcome of this dispute will determine whether Nepal's transport sector can successfully transition into the digital age or remain locked in traditional frameworks that many argue have failed to meet public needs.
❓ Frequently Asked Questions (FAQs)
1. What does Gandaki’s ride-sharing law do?
It legally recognizes ride-sharing services using private red-plated vehicles for commercial use. The law sets specific registration fees, insurance mandates, and classifies ride-sharing as a service industry.
2. Why did transport operators go on strike?
They viewed the law as a threat to their livelihood, claiming it allows unfair competition from private vehicles that don’t follow the same operational and financial obligations.
3. Is this law applicable across Nepal?
Currently, it applies only to Gandaki Province. However, other provinces like Bagmati are drafting similar policies, and federal coordination may follow.
4. What happens next legally?
The main legal issue is whether provinces have the right to regulate transport. The case could reach the Supreme Court, especially if federal law isn't updated to reflect this change.
5. How did the public respond to the strike?
Millions of daily commuters across Nepal were affected. Many supported the need for better transport options but criticized the strike’s impact on essential services.
6. Are ride-sharing platforms like Pathao and InDrive now legal in Gandaki?
Yes, they are allowed to operate legally, provided they comply with the new provincial registration and insurance requirements.
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