Invisible riders of Nepal’s gig economy

The rise of the gig economy has quietly transformed how people work and how services reach customers in Nepal. From food arriving at our doorstep to a ride booked with a tap on a phone, digital platforms have made everyday life faster and more convenient. Behind this convenience, however, are thousands of delivery riders and gig workers navigating traffic, weather, long hours, and uncertainty—often invisible to the customers they serve. As Nepal’s gig economy grows rapidly, it raises important questions about labor conditions, dignity, and the future of work.

The gig economy refers to a labor market where individuals work on a short-term, task-based, or freelance basis rather than holding permanent jobs. These workers are usually connected to customers through digital platforms, such as ride-hailing apps, food delivery services, and online freelancing websites. In Nepal, the gig economy has expanded significantly due to increased smartphone use, internet access, and a lack of formal employment opportunities, especially for young people.

According to a 2024 report by the Asian Productivity Organization (APO), the gig economy contributed around seven percent of Nepal’s GDP, highlighting its growing importance to the national economy. Platforms like Pathao, InDrive, and Yango have become household names, offering flexible work opportunities to thousands of people across the country.

The gig economy in Nepal is not limited to transportation and food delivery. The Online Labor Index shows that 49 percent of Nepal’s online freelance workforce is engaged in software and technology development, indicating strong participation in global digital labor markets. At the same time, local platforms continue to expand. Pathao alone has provided employment to over 200,000 individuals, including motorbike riders, cab drivers, and food delivery personnel, according to the APO.

Food delivery services have also seen major growth. Foodmandu, one of Nepal’s leading food delivery companies, has reported annual business worth over $5.58m in recent years. These platforms have attracted venture capital and helped shape a new service-based urban economy.

Delivery riders are among the most visible yet least acknowledged workers in the gig economy. While customers often expect quick and timely service, riders face numerous challenges—traffic congestion, poor road conditions, harsh weather, system glitches, and unfamiliar locations. They are expected to meet strict delivery deadlines, even when circumstances are beyond their control.

Many riders continue working while hungry, cold, or exhausted, prioritizing deliveries over their own well-being. As customers, frustration can easily turn into anger when food arrives late. I experienced this myself while ordering food—the rider struggled to find my location, and though I remained silent, hunger and irritation built up. It was only later, after speaking with a rider named Bikab (name changed), that I understood the pressure riders face. Bikab shared that he had worked full-time in food delivery before taking a break and later returning.

The gig economy has also opened doors for people beyond Kathmandu. In the fiscal year 2021/22, over 25 percent of gig workers came from rural areas, according to the published article in Nepal Economic Forum, showing how digital platforms are spreading economic opportunities nationwide. This expansion has helped raise household incomes, reduce inequality, and provide flexible work options—especially for women balancing paid work with family responsibilities.

Bikab shared that he previously worked in a salaried position, earning Rs 15,000 per month, which was sufficient for him at the time. He mentioned that customers were generally polite and well-behaved, and when he treated them kindly, they were understanding in return. He said “I am not aware of any rating system” and added that the company provided insurance and compensated him in case of an accident”. Additionally, he was paid Rs 7 per kilometer, which was deposited on a weekly basis. He said that when he used to do it a year ago, the order used to be less and this time when he started it again, the orders were comparatively higher than before.

Minaj (name changed), another delivery rider, has been working on a bicycle for the past five months. Still in his early twenties, he is still figuring out his future while dreaming of pursuing higher education. He works on a per-order basis, earning Rs 120 per delivery.

According to him, customers sometimes get angry, mainly due to delays caused by restaurants or road blockages during deliveries. Although there is a rating system, he feels that customers are not very interested in it. However, colleagues say that ratings can affect their performance and overall service.

Regarding insurance, he shared that the company has stated insurance will only be provided once a damage exceeds Rs 15,000. “For cycle riders, we are usually assigned nearby areas, but since I use an EV cycle, they sometimes send me 8–9 km away,” he added. On average, he said he can complete a maximum of 10–12 orders per day.

His friend, Karol (name changed) explained that refusing an order increases pressure on other cyclists, forcing them to clear additional deliveries. Riders often have to wait for orders, and at times they do not receive enough requests consistently.

“We do this as a part-time job, but we still have to work around 8–8.5 hours daily, and sometimes we reach home as late as 10 or 11 at night,” said Karol. The salary is deposited on a weekly basis.

They noted that while customers are gradually adapting to delivery services, young riders have become dependent on weekly payments. He believes this system, although convenient, makes it difficult to wait an entire month for salary, which could otherwise offer more stability.

They also expressed concerns about job security. The bicycles are rented, meaning riders must take responsibility for maintenance and payment. “It’s risky,” Minaj said, adding that he knows several riders who lost their cycles and are still paying for them.

There is less family support for this work, and they do it mainly for pocket money. He said he does not see a long-term future in the job and feels that despite having good academic records, he has lost a year after getting into this work. Minaj also mentioned that there is limited freedom within the company. Senior staff often put pressure on riders, and while some days they are unable to take orders, on others they are required to work until 10 pm.

Minaj and Karol concluded by saying that the company is highly customer-oriented but does not adequately care for or support its riders. They believe the company should value its riders more and introduce clear daily targets, which could help regulate working hours and improve overall working conditions.

Looking ahead, the gig economy holds both promise and concern. While it can continue to generate employment and innovation, issues such as job security, fair wages, insurance, and worker protection need urgent attention. Delivery riders, they are humans with limits, responsibilities, and dreams.

Navaraj Mishra, the operation head of Nepal Can Move, stated that the company does provide accidental insurance to its riders through an insurance provider. He explained that working hours are fixed at eight hours per day for salary-based riders, while there is no fixed schedule for those working on a freelance or contract basis.

He noted that rider payments already include expenses related to maintenance and petrol, and that workers are categorized under two employment models: salary-based and contract-based. “There is no strict or compulsory dress code for riders. However, all riders are required to carry delivery bags, which are provided by the company to ensure consistency and safety while transporting orders,” he said.

Emphasizing rider welfare, Mishra said that Nepal Can Move provides safety training which are designed to help riders understand road safety, delivery protocols, and precautionary measures to reduce the risk of accidents while on duty.

He added that the company continues to focus on improving operational standards while supporting its delivery workforce. According to Mishra, Nepal Can Move currently has an estimated total of more than 1,200 riders working.

For the gig economy to be truly sustainable, companies, policymakers, and consumers must work together to ensure dignity, safety, and fairness for those who keep the system running. Only then can convenience coexist with compassion in Nepal’s rapidly evolving world of work.

Santosh Khadka, customer service at Bhoj Deals, said the company currently works with more than 150 riders and places strong emphasis on transparency, safety, and rider well-being. “All our riders go through a detailed orientation program before starting their job. During this time, everything is clearly explained—from working hours to company policies. The working hours are flexible and depend on the rider’s convenience, while fully complying with labor laws. If riders choose to work extra hours, they are compensated with overtime pay,” he said.

“We have a built-in rating system in our app that allows us to receive daily customer feedback on rider performance. This helps us track individual KPIs and continuously improve our service standards.”

According to Khadka, new riders also receive five to seven days of training, depending on their performance. “Every rider is covered by accidental insurance from day one.” Customer experience remains a top priority for the company, he emphasized. “If any issue arises, we take immediate action. We have a dedicated customer care department that contacts both the customer and the rider to understand the situation. Customers who harass or abuse riders are flagged in our system to prevent future incidents,” Khadka said.

He also noted that Bhoj Deals offers flexible earning models like, “Riders can choose from multiple shifts based on their convenience, and we have different earning modalities. In the case of fuel price hikes, we increase fuel reimbursement rates for bike riders,” he added.

Khadka further said the company actively promotes work-life balance and close rider management. “We have a dedicated rider management team consisting of a manager and four assistants. Each rider is monitored individually and remains in daily communication with the team. Additionally, our CEO meets with riders once every month to listen to their concerns and operational challenges,” he said.

Binay (name changed) is an engineering student who joined the delivery sector just a month ago. He currently works at Bhoj Deals on a weekly salary basis. “I am here for a very short period of time and trying to travel abroad,” the 24-year-old said. He explained that dealing with customers can be challenging. “Customers are sometimes rude, and we have to find ways to explain delays. Some understand, but many get angry. We also have to accept when we ourselves are delayed,” he said. He earns enough to cover his daily expenses, receiving Rs 7–8 per kilometer for petrol. “I don’t feel pressured right now, but the real pressure comes from the seniors,” he added. According to him, stress is especially noticeable when deliveries are late. The costs of accidents and health issues are mostly covered by the company’s insurance. The company provides training as well, but Binay didn’t find it very important and attended it for only a day.

The experiences of riders highlight the human side of Nepal’s rapidly growing gig economy. While these platforms offer flexible work opportunities and contribute significantly to the economy, they also expose workers to long hours, uncertain incomes, and pressures from both customers and company management. As the gig economy continues to expand beyond Kathmandu into rural areas, it is essential for companies, policymakers, and consumers to recognize that behind every delivery and service is a worker navigating real risks, responsibilities, and dreams. Only by balancing convenience with compassion can Nepal’s gig economy thrive sustainably, ensuring dignity, safety, and opportunity for all its workers.

Five takeaways from Nepal’s foreign trade of 2025/26

Nepal’s foreign trade expanded sharply in the first five months of the current fiscal year 2025/26, driven by a strong rebound in exports and rising imports. However, the latest data also underline persistent structural weaknesses—most notably a widening trade deficit and growing dependence on a narrow range of export items.

According to figures released by the Department of Customs, Nepal’s total foreign trade reached Rs 882.69bn by mid-December, marking a 20.07 percent increase compared to the same period of the previous fiscal year. Imports stood at Rs 766.18bn, while exports amounted to Rs 116.5bn.

Although exports surged by an impressive 58.17 percent year-on-year, they accounted for just 13.2 percent of total trade, highlighting the country’s continued reliance on imports to meet domestic demand.

Ballooning trade deficit persists

Despite strong export growth, the trade deficit widened to Rs 649.68bn in five months.

Trade imbalances with Nepal’s two largest trading partners—India and China—remain particularly stark. Nepal incurred a trade deficit of over Rs 339.02bn with India during the review period. Imports from India totaled Rs 434.06bn, while exports were limited to Rs 95.04bn.

The situation with China was even more skewed. Nepal imported goods worth Rs 163.73bn from China but exported just Rs 46.68m, resulting in a trade deficit of Rs 163.26bn.

Nepal posted a trade surplus with only a handful of countries. Romania emerged as the top surplus destination, with Nepal recording a net trade gain of Rs 63.47m over the five-month period. Sweden and Iraq were among other countries where Nepal maintained a positive trade balance. However, trade volumes with these countries remained small.

Petroleum imports overtake total exports

For the first time this fiscal year, fuel imports have exceeded Nepal’s total export earnings. 

In the five-month period, Nepal spent Rs 121bn on fuel imports which surpassed total export earnings of Rs 116bn.

Petroleum products continue to dominate the import basket, reflecting Nepal’s heavy dependence on imported energy.  Nepal imported Rs 45.6bn worth of diesel, Rs 27.33bn worth of petrol and Rs 22.39bn worth of LPG, and Rs 8.34bn worth of aviation turbine fuel (ATF) during the period.  

The country also imported lube oil and petroleum bitumen, among others, during the period.

Heavy reliance on soybean oil exports

Soybean oil emerged as Nepal’s single largest export item, accounting for Rs 46.55bn in the first five months. This accounts for 40.12 percent of total exports. 

Nepal also exported sunflower oil worth Rs 3.73bn during the same period.

This export surge is largely driven by the duty-free access Nepal enjoys under the South Asian Free Trade Area (SAFTA) in India. While India imposes high tariffs—up to 35.75 percent—on refined vegetable oils imported from third countries, Nepali products enter the Indian market at zero duty.

Taking advantage of this preferential access, Nepali firms import crude soybean and sunflower oil from global markets, refine them domestically, and re-export the finished products to India.

However, experts warn that this model is highly vulnerable. Any significant reduction in India’s tariffs on vegetable oils from other countries could erode Nepal’s competitive edge and potentially wipe out nearly half of its exports to India.

In the previous fiscal year, Nepal exported soybean oil worth Rs 106.79bn and sunflower oil worth Rs 12.33bn. Together, they accounted for 43 percent of total exports, underscoring the concentration risk in Nepal’s export profile.

Electric vehicle imports decline sharply

Electric vehicle (EV) imports fell sharply in the first five months of 2025/26, even as overall car imports edged up.

Customs data show EV imports declined by 23.55 percent to 3,800 units, down from 4,695 units a year earlier. The total value of EV imports stood at Rs 8.95bn which generated Rs 5.64bn in government revenue.

Importers attribute the decline largely to stockpiling at the end of the previous fiscal year amid expectations of tax changes.

In contrast, imports of petrol-powered vehicles surged. Petrol car imports rose by 50.68 percent to 2,801 units from 1,799 units a year earlier, indicating renewed interest in internal combustion engine vehicles—at least in the short term.

Argentina emerges as a major trade partner

Argentina has emerged as Nepal’s third-largest import source in the first five months of the fiscal year, after India and China. Nepal imported goods worth Rs 44.46bn from the South American nation during the period.

The bulk of these imports consisted of crude soybean oil for domestic refineries. 

Argentina has emerged as Nepal’s important trade partner in recent years. In 2024/25, Nepal imported Rs 99.3bn worth of goods from Argentina—nearly eight times higher than the Rs 12.38bn recorded in 2023/24.

Crude soybean oil alone accounted for Rs 88.91bn, or nearly 90 percent of imports from Argentina during the year, followed by crude sunflower oil worth Rs 8.89bn.

Former Lieutenant General Sharma appointed as Foreign Minister

Former Nepal Army Lieutenant General Balananda Sharma has been appointed as the Minister for Foreign Affairs on Friday. 

Sharma took the oath of office and secrecy before President Ram Chandra Paudel at a special ceremony held at Sheetal Niwas this afternoon.

Prime Minister Sushila Karki, Speaker of the House of Representatives Devraj Ghimire, National Assembly Chairman Narayan Prasad Dahal, Chief Justice Prakash Man Singh Raut and other distinguished officials were present in the oath-taking ceremony.

 

 

 

 

UML Chair Oli and Communication Minister Kharel hold meeting

The interim government is giving continuity to holding consultations with the top leaders of the key political parties to create an enabling environment for the March 5 elections.

Towards this, Minister for Communication and Information Technology Jagadish Kharel held a meeting with CPN-UML Chairperson KP Sharma Oli at the latter's residence at Gundu, Bhaktapur today.

Minister Kharel is a member of the Political Dialogue Committee formed by the interim government to engage with political parties and stakeholders to create a favorable atmosphere for the election to the House of Representatives.

Earlier today, Minister Kharel consulted with Nepali Congress President Sher Bahadur Deuba regarding the impending election. 

The government led by Prime Minister Sushila Karki has been effortful to successfully conduct the fresh election on March 5, 2026 by forging a national consensus.