By Sajeet M. Rajbhandari
In recent days rideshare companies like Tootle and Pathao have grown to mass quite a user base over a relatively short span of time. The concept is fairly simple; much like taxis, vehicle owners -namely two wheelers- can pick up and share their rides with other commuters for a predetermined fare. Not only does ride sharing provide commuters with a middle ground between uncomfortably crowded public buses and overpriced taxis; but in a study conducted by Pathao (a Bangladesh based rideshare company), the findings show that, vehicle owners leaving their two wheelers behind and using rideshare services helped reduce traffic congestion in Kathmandu and the speed of traffic flow actually increased by 2kmph. Nepali rideshare startup, Tootle states that there are over 800,000 motorbikes and scooters registered within the valley itself and for them it only seemed like a logical move to capitalize over this abundance.
While the advent of rideshare companies does seem too good to be true, it also comes with its own set of shortcomings. While these companies are excellent examples of Nepali entrepreneurships adapting towards advancements and technological trends, it also raises a multitude of questions in regards to legal and ethical issues. The Taxi Driver’s Association of Nepal, as a matter of fact, filed a legal complaint against rideshare services in January 2019, stating them to be functioning illegally and without governmental jurisdiction. As per the, Motor and Vehicles and Transport Management Act, 1993, private vehicles are not allowed to be used in transportation services. In other words, vehicles that do not don the government issued white on black license plates, aren’t allowed to charge any fees for their services. Rideshare services faced further criticism in regards to their terms of service and their insurance policies for both users and riders. The way the user agreement and the terms of service has been designed by these companies, allows them to be able to avoid responsibilities for an accidents or mishaps that take place during a ride share.
Snipping from Pathao Nepal’s terms of service:
This means that Pathao would have no legal responsibility should any mishap take place to the driver and/or the client. Furthermore, both Pathao and Tootle state that they are actually a tech based company and not a transportation service provider. The legal repercussions and loopholes that this implies are still very unclear.
Snipping from Tootle’s terms of service:
However, Tootle blames this on the lack of insurance policies for rideshare services. Since ridesharing is a fairly new concept in our society, there lacks some much needed policies and laws. The government has since acknowledged the need to update its transportation policies in order to accommodate these services. The Department of Transport Management had announced the introduction of a new law, to help govern, regulate and register these ridesharing services, to be announced on the 14th of April 2019.
The government has also issued a Rs.3 million VAT due by Pathao while Tootle has been charged a bill of Rs.34 million in income tax and VAT. While Pathao never actually charged VAT in their services, and Tootle stopped charging VAT after a year of operation; the government has deemed both companies liable to pay VAT charges. Sixit Bhatta, co-founder of Tootle, stated that Tootle stopped charging VAT once they realized that VAT is not applicable to public transport. This statement by Bhatta however contradicts Tootle’s claims of not being a transport company. Government tax official have considered both businesses as service providing companies and have hence been deemed liable to pay VAT.
The government crackdown on Tootle and Pathao riders was met with strong criticism by the masses. Some stating how a 26 year old transportation law could possibly address to current issues. Advocates of the ridesharing services have put forward arguments stating that not only do the services provided an alternative to ill managed public transport, it also creates an economic source for people, all the while decreasing traffic congestion. They have critiqued the government’s actions as something that was done without proper study, and which demoralizes innovation and entrepreneurship; both things that are extremely valuable to our economy.
“They said I can’t, but I did”
From riding a four wheeler scooter for transportation to getting to earn from that, Ganga Chantyal never stopped believing in her capabilities. This strong lady standing on her feet despite all the quotations of the community has been working as a Pathao rider and also adding to her profile being the Vice-president of Rastrya Adhivasi Janajati Apanga Mahlila Sangha, Nepal. Mansi Thakur and Harish Chhetri from THE NUTGRAF had a conversation with her.
To you, where did this idea of being a rider come from?
I have been living in Kathmandu for past 15 years and I really didn’t know that something as such existed until my friends told me it did. Actually, after joining pathao it was, that I knew tootle existed. But I questioned my disability, if they would still take me while I rode a four wheeler and I was quite happy when they did.
How much of time do you contribute to being a rider?
Well, apart from Pathao, I am also involved in lot many other things. Naming them, I am the Vice president of Rastriya Adhivasi Janajati Apanga Mahlila Shanga, Nepal. So, I am usually devoted to work for that as well for which sometimes we have to travel to places and get busy. On the days when I don’t have events there, I give my whole day to Pathao.
On an average how much is being a rider supporting you financially?
I live with my family so I have to devote my morning time preparing my kids for school. Cooking food, getting them ready, all of this takes all my morning time. After they leave I spend my whole day as a rider to Pathao. Telling in an average, if I am contributing from 10 am, then around Nrs. 2000 comes to me each day. Sometimes, it goes higher and sometimes it drops down depending on how much of time I contribute to being a rider.
You are involved in so many other fields, as you are a singer, a dancer, a basketball player, yet why did you want to add up “Rider” to your list?
After all of these works I usually used to stay free for a huge amount of time. With being a rider I can utilize time and at the same time earn from it. I never thought my four wheeler would ever be my feet to earn money. Also, there were lots of people who said, I can’t and still I did it. So, I believe there are people who would tell us females to stay at home and do household works and with this I believe, it created a platform for us to not only limit ourselves to houses and being housewives but being the earning hand in the house.
Recently, lots of news had been coming out on how there are issues with Pathao and Tootle, there were demands of banning them. What are your views on it?
See, we have thousands of youths going abroad at this point of time. Pathao and Tootle I believe can be used as tool to make them stay back and do something here in Nepal. Provided that the government and these companies sort their matters out, these can help a lot in employment. There is a large mass of semi-skilled youths who need nothing but just a ride and license and they can earn money. So, I believe this has been helping a lot and can help a lot further if these companies are given some recognition and are seen as a helping hand to keep youths in their own countries.
Does Pathao have any kind of insurance for the rider or the passenger?
Till date, we haven’t been told that yet. I don’t think they have any such insurance which they should definitely have. We ride from day to night and if anything happens to anyone we should have some security.
Ending up, what would be the one thing you would sum up to?
They said I can’t but I did it. There always has to be a belief factor in you and when opportunities as the ones that Pathao and Tootle and other such companies are giving exists, I think we should promote it. Also, we should never limit ourselves, like I have been involved into lots of organizations. All in all, to everyone going out I suggest them to find opportunities in Nepal. There are lots of them.