Nepal’s ride-hailing sector has rapidly evolved into a significant part of the urban economy, supporting tens of thousands of drivers and serving a growing base of daily commuters across cities like Kathmandu. Globally, app-based mobility platforms are recognized for contributing to job creation, improving transport efficiency, and expanding access to flexible income opportunities-trends that are increasingly visible in Nepal as well.
However, recent driver protests highlight mounting pressures within this ecosystem, particularly driven by rising fuel prices and broader cost-of-living challenges. We acknowledge these concerns and respect the role of the driver community in bringing them forward, while also recognizing the Government of Nepal’s continued efforts to manage inflationary pressures and promote long-term shifts such as electric mobility.
Fuel continues to represent one of the most significant operating expenses for drivers, often accounting for close to a third of overall trip costs. As fuel prices fluctuate, even marginal increases can influence earnings dynamics, particularly in situations where fare adjustments take time to respond. At the same time, evolving passenger preferences are shaping a stronger inclination toward affordable mobility options, underscoring the need for a careful equilibrium between driver sustainability and passenger affordability. In this context, Nepal’s gradual shift toward electric vehicles aligned with broader national priorities signals a constructive transition, offering a pathway to reduce reliance on conventional fuels while supporting more stable, long-term cost structures for drivers.
Achieving this balance, however, is not straightforward. It requires solutions that can respond to real-time conditions while remaining fair and transparent for both drivers and passengers.
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At the core of the debate is pricing flexibility. In a dynamic environment where factors like traffic, fuel costs, and demand can shift rapidly, it is important for pricing to reflect real-time conditions in a fair and transparent way.
inDrive’s peer-to-peer model approaches pricing differently by enabling passengers and drivers to arrive at a mutually agreed fare. Instead of relying solely on automated fare calculations, passengers can propose a price and drivers can accept, reject, or counteroffer. This creates a transparent pricing mechanism that allows both parties to respond dynamically to real-world conditions, including fluctuations in fuel costs.
Flexible pricing models can help stabilize supply during uncertain economic periods. When drivers have more control over pricing decisions, they are better positioned to factor in operating costs and determine which trips are economically viable. At the same time, passengers retain the ability to choose offers that align with their budgets, supporting continued accessibility.
However, pricing flexibility alone is not sufficient. Responsible and timely support measures are equally important during periods of economic strain.
As part of its immediate response to rising operating costs, inDrive Nepal is also distributing a total of NPR 2.7 million in fuel support to its driver-partners, starting from the third week of April 2026. The initiative will be distributed based on driver activity and performance metrics, ensuring that those who rely most on the platform receive targeted financial support.
Additional measures include reduced service fees on selected rides and performance-based incentives designed to support driver earnings stability.
Globally, inDrive maintains a low service fee, reinforcing its commitment to ensuring drivers retain a larger share of their earnings.
These actions reflect a broader principle: sustainable ride-hailing ecosystems require continuous adjustment based on real market conditions. Driver retention is closely tied to how predictable and stable earnings are, while passenger demand depends on transparent pricing and a sense of fairness. Maintaining a balance between these factors is essential for long-term platform stability.
Importantly, the sustainability of ride-hailing extends beyond platform policies. External factors such as fuel pricing frameworks, urban mobility infrastructure, and broader economic conditions significantly influence driver livelihoods. Addressing these structural challenges requires continued dialogue and collaboration between policymakers, private sector, and driver communities. This will be key to building a more resilient and inclusive urban mobility system.
The author is public policy & government affairs lead, APAC, inDrive
