Of late, Kathmandu and other cities have witnessed increasing number of vehicles, with expansion of roads. This has greatly eased the traffic movement. Still the transportation system is not up to the expectations. The commuters have to face difficulties while travelling in the public vehicles mostly operated by the private sector. The buses are so overcrowded that passengers are overly crammed into them. The roads are not accommodating the ever rising number of vehicles, resulting in traffic congestion. The common people are unable to afford the expensive taxi fares. At the same time, the taxi drivers often refuse to ply on the meter and cunningly charge exorbitant fares. The people have very hard times in the evening hours when few passenger-carrying vehicles move on the road. The messy transportation system has made the daily life of commoners difficult.

In 2015, the public transportation arrangement was further turned into upside down when India stopped supplying fuel to Nepal. This forced the people to help each other to overcome the unprecedented crisis facing the transport sector. The motorists and two-wheeler riders gave the stranded commuters a lift to their destinations. This situation gave a rise to the idea of ride-sharing of private vehicles which has now become popular and commercial, too. It is an on-demand digital service which promptly connects drivers with the passengers. The companies like Tootle and Pathao are providing applications to facilitate the ride-sharing in Kathmandu and other urban centres of Nepal. It has attracted people who are in the immediate need for travelling home or other desired places.

Though the commercial ride-sharing is popular among the people, it has posed a legal question. The economic transactions under the ride-sharing of private vehicles must come into the tax system but there is no legal provision to cover them. The matter has frequently come into the public scrutiny with the taxi drivers showing strong reservation about it. They have asked the concerned authorities to take action against the ride-sharing of the private vehicles. Taxi drivers see the ride-sharing business as a threat to their occupation. Their complaints are genuine because they are paying taxes to the government and a fair practice is necessary for all to pursue his/her business under the healthy environment. Ironically, the authorities are in a dilemma. Despite knowing the fact that it is illegal, they can’t ban it right away owing to its positive role in the sector. This is a reason why the incumbent Prime Minister had some time ago instructed the concerned officials not to take action against those providing ride-sharing services.

Now the better option is to legalise the ride-sharing business and bring it under the tax net. By doing so, the riders as well as passengers will get security when it comes to insurance and depreciation of vehicles or in case of road accidents when the passengers can legally claim the compensation for his/her injuries. Likewise, the legal provisions provide clear identity to the motorcycles and four wheelers involved in the ride-sharing business, enabling the traffic police to deal with the former without any glitches. Given that the public transportation system is in mess, and thousands of persons have been employed in the ride-sharing business, it is not prudence to stop this venture.