InDrive Officially Launches Ride Sharing Service in Nepal

InDrive, a renowned ride-sharing app, has made its debut in Nepal, marking May 6, 2024, as its official launch date. After three years of operation, the company formalized its services, now charging a 10 percent commission from drivers, a significant shift from its previous commission-free model. InDrive's expansion spans across Kathmandu, Pokhara, and Dharan, with plans for further city expansions and the introduction of courier and cargo services in the pipeline. However, recent regulatory measures by traffic police highlight the evolving landscape of ride-sharing regulations in Nepal. Despite a seven-year journey towards legalization, ride-sharing services like InDrive operate within a regulatory gray area, with the government acknowledging their presence due to technological advancements.

Commencement of Formal Services

After operating for approximately three years, InDrive has formalized its services by registering as a company and initiating its operations.

Introduction of Commission System

With the commencement of formal services, InDrive has implemented a commission system, whereby it now charges a 10 percent commission from drivers starting from May 6, 2024. Previously, the company operated without such commissions.

Expansion to Multiple Cities

InDrive has launched its services not only in Kathmandu but also in Pokhara and Dharan. Additionally, the company has announced plans to expand its services to other cities, including the introduction of courier and cargo services.

Regulatory Measures by Traffic Police

Recently, the traffic police have intensified their efforts to halt and penalize InDrive riders found operating without proper registration.

Evolution of Ride Sharing in Nepal

The journey towards legalizing ride-sharing services in Nepal spans over seven years, with the first initiative taken by the Nepali company Tootle in January 2017. Initially, Tootle introduced ride-sharing services utilizing motorcycles and taxis.

Regulatory Landscape

Despite the absence of federal laws permitting private vehicles to transport passengers for fares, the government has refrained from prohibiting ride-sharing services, citing the utilization of technology as a pivotal factor.