MoPIT, DoTM divided over ride-sharing services

Kathmandu, November 27

The Ministry of Physical Infrastructure and Transport (MoPIT) and Department of Transport Management (DoTM) have locked horns about whether or not to lift the existing ban on ride-sharing services.

The disagreement has come to the fore with the statements of the newly-appointed Minister for Physical Infrastructure and Transport Basanta Kumar Nembang and DoTM Director General Gogan Bahadur Hamal.

In a meeting held today afternoon, Minister Nembang directed DoTM not to obstruct the ride-sharing services that Tootle and Pathao had been providing for the general travellers.

“Do not obstruct the services before the government formulates new law for the ride-sharing companies,” said Rajeshwor Gyawali, joint secretary at the ministry, quoting the minister.

As per Gyawali, the minister pointed out that because of ride-sharing companies, a number of jobless youths are getting attractive jobs and providing cheap and reliable services to commuters.

“So, we need to build a strong regulatory mechanism for the ride-sharing services, as per Minister Nembang,” she added.

However, DoTM expressed strong reservations against the minister’s direction.

During the meeting, DoTM officials opined that ride-sharing services, including bikes, private cars and taxis, should be banned as ‘they have been collecting extra fees from the travellers’.

“We suggested the minister to take strong action against those providing the ride-sharing services, which is illegal as per our transportation law, but he was not convinced with our argument. If we lift the ban as per the minister’s direction, the entire transportation sector will end up in chaos,” said a DoTM official, seeking anonymity.

Ride-sharing service providers have been demanding that the ban be lifted and allege that the government has banned the service after coming under pressure from the taxi drivers and transport entrepreneurs.

DoTM Director General Hamal said the government should manage the transportation sector as per law.

“Rules and regulations need to be amended to make them contextual, but there are various risks to lifting the ban on ride-sharing services without formulating the necessary law,” he said.

Hamal further emphasised that apart from the security of the passengers, other issues also need to be worked out, including compensation to the victims in case the ride-sharing service provider meets with an accident.

On November 19, the DoTM had issued a notice banning ride-sharing services and threatened to initiate legal action if the service providers continued to use private motorbikes for ferrying passengers.

After the DoTM issued the notice and declared ride-sharing service illegal, Traffic Police have started cracking down on the ride-sharing service providers.