Site icon Fiscal Nepal

‘inDrive ready to lead Nepal’s digital transformation, Nepal is our key market’

Mr. Anton Ambrose is the Head of Public Policy and Regulatory Affairs for APAC at inDrive, one of the world’s leading mobility solutions providers. With over two decades of experience in policy advocacy, including key roles in aviation and mobility across APAC, the Middle East, and Africa, he has played a pivotal role in championing open skies agreements and promoting diversity, equity, and inclusion initiatives. Anton specializes in navigating complex regulatory landscapes and advocates for policies that drive innovation, sustainable growth, and empowerment. Umesh Poudel of Fiscal Nepal caught up with Mr. Anton Ambrose during his recent visit to Kathmandu to discuss inDrive’s presence in Nepal, its initiatives, priorities, and future plans. Excerpts:

What are the key business strategies in Nepal, and how do you view Nepal’s growing market from an investment standpoint?

Nepal holds significant strategic importance for us, not only within the APAC region but also on a global scale. This is why we dedicate substantial time, effort, and resources to expanding our presence in the country. We recognize Nepal’s immense potential—not just in the ride-hailing sector but also in other verticals within our business ecosystem.

Our entry into the Nepalese market through ride-hailing services is just the beginning. We are committed to fostering growth, innovation, and development in multiple areas, ensuring that our business evolves alongside the market’s expanding opportunities. Given Nepal’s dynamic economic landscape and increasing adoption of technology, we see tremendous scope for investment and business expansion.

Moreover, our commitment to Nepal extends beyond just business growth. We actively engage with the market from a policy standpoint and work closely with stakeholders to create a sustainable and impactful presence. This dedication is reflected in our frequent presence in the country, underscoring our long-term vision for Nepal. Our goal is to contribute meaningfully to Nepal’s digital transformation, transportation sector, and overall economic progress while continuously enhancing the services we offer.

How does inDrive plan to navigate Nepal’s regulatory landscape for ride-hailing services?

At inDrive, we strongly believe in open dialogue and collaboration, which is precisely why we are here—to engage in meaningful discussions with stakeholders. We recognize that regulatory frameworks are essential for ensuring a well-structured and efficient ride-hailing ecosystem. Given our presence in 48 countries, we have gained extensive experience in adapting to different regulatory environments worldwide.

Our approach is to actively engage with local authorities, policymakers, and relevant stakeholders to contribute to the development of a policy framework that aligns with Nepal’s specific transportation needs. We see this as an opportunity not only to share insights from our global operations but also to tailor solutions that best fit the unique characteristics of Nepal’s ride-hailing sector. By exchanging ideas and best practices, we hope to foster a regulatory environment that benefits drivers, passengers, and the broader community.

Ultimately, our goal is to work alongside the authorities to create a well-balanced framework that ensures safety, fairness, and efficiency for all participants in Nepal’s mobility sector.

What challenges do you foresee in Nepal’s adapting inDrive model in Nepal and how will you address them?

One of the most significant challenges we anticipate in Nepal is the lack of a clear regulatory framework governing ride-hailing services. At present, there are no well-defined policies that specifically address the operational aspects of platforms like inDrive. This regulatory uncertainty can create roadblocks for the industry’s growth and hinder innovation.

However, this challenge also presents an opportunity. Our presence here is not just about operating within the existing framework but also about collaborating with the relevant authorities, policymakers, and industry stakeholders to establish fair and effective guidelines. By working closely with government bodies, transport regulators, and driver communities, we aim to advocate for policies that are both practical and inclusive—ensuring they benefit all stakeholders, including passengers, drivers, and the broader transport ecosystem.

Moreover, regulatory clarity will not only support inDrive’s sustainable operations in Nepal but will also contribute to the long-term development of the ride-hailing industry. By fostering open dialogue and engaging in constructive discussions with policymakers, we hope to pave the way for a more structured, transparent, and growth-oriented environment. In turn, this will create a more reliable and efficient mobility landscape, ultimately benefiting the people of Nepal.

What specific measures is inDrive implementing to enhance consumer safety and protect data privacy in Nepal, and how are these initiatives expected to influence the company’s future expansion and overall growth in the country?

At inDrive, safety has always been at the core of our operations. We have implemented multiple safety measures and protocols to ensure that both riders and drivers feel secure while using our platform. These safety features are embedded within our organization’s framework and are constantly reviewed and upgraded to meet the highest industry standards.

Our commitment to safety includes rigorous verification processes for drivers, in-app safety features such as real-time ride tracking and emergency contact options, and continuous monitoring to identify and address any potential risks. Additionally, we are actively working on enhancing data privacy measures to safeguard user information, ensuring compliance with local and international data protection regulations.

As we continue to evolve, these safety initiatives will play a crucial role in our future growth. By prioritizing passenger and driver security, we aim to build a trusted platform that encourages more people to use our services with confidence. A strong emphasis on safety not only enhances user satisfaction but also fosters long-term loyalty, ultimately contributing to the sustainable expansion of inDrive in Nepal and beyond.

In terms of data protection how have you plan to protect the data?

At inDrive, data protection is a top priority. We adhere to strict policies to ensure that all user data remains secure and confidential. We do not share user data with any third parties.

Beyond data security, we are deeply committed to the safety of both our passengers and drivers. Our verification process ensures that all drivers undergo thorough background checks before being approved on our platform. A dedicated verification team reviews and validates essential documents to confirm their authenticity.

Safety training is another key aspect of our commitment. All drivers receive training on essential safety protocols, including proper conduct with passengers and road safety guidelines. This ensures they are well-equipped to provide a secure and professional service.

For real-time safety measures, we have multiple layers of support. In case of emergencies, both passengers and drivers have direct access to law enforcement authorities. We have established a direct communication channel with the police, allowing users to seek immediate assistance if needed.

Additionally, our 24/7 customer support team is always available to assist users. In Nepal, we have a dedicated local support team that operates in the Nepali language, ensuring seamless communication and quick resolution of any concerns. This localized support enhances user experience and ensures that help is always within reach.

Through these comprehensive measures, inDrive maintains a secure and reliable platform for both drivers and passengers, prioritizing their safety and data protection at every level.

How does the 70:30 rule specifically affect inDrive’s business operations in Nepal, and what challenges or adjustments has the company made in response?

The 70:30 foreign direct investments (FDI) policy in Nepal has a direct and significant impact on inDrive’s operations, not only for our current business but also for our future expansion plans. This policy establishes a precedent that may discourage foreign investors from entering the market.

When we look at Nepal’s neighboring countries, such as India, we see a more flexible approach toward FDI. India has not imposed a strict 100% FDI regulation across sectors, allowing businesses more freedom to operate and grow. A rigid 70:30 rule in Nepal creates additional policy barriers, making the country less attractive to global investors.

Investors are generally inclined to operate in regions where there are minimal regulatory constraints and more economic openness. Policies like this, which limit foreign ownership, could hinder Nepal’s ability to attract global businesses and contradict the country’s stated goal of encouraging foreign investment. For example, during investment summits, Nepal’s leadership emphasizes the need to attract FDI. However, restrictive policies like the 70:30 rule send a contradictory message.

Another concern is the inconsistency across different sectors. The IT industry in Nepal is allowed 100% foreign ownership. Given this, we seek clarity on why this specific 70:30 ratio was chosen. Why not 90:10, or a more flexible structure that accommodates different business models? These are critical questions for stakeholders to address.
At inDrive, we believe in fostering dialogue with policymakers and industry leaders to find a balanced approach.

We are committed to Nepal, not just as a business but as a long-term partner in economic and community development. Our engagement goes beyond operations—we actively contribute to Nepalese society through various initiatives.

Our commitment extends beyond our core business. As a brand, inDrive has always prioritized giving back to the communities where we operate. Globally, we have a dedicated initiative called inVision, which focuses on community impact projects. While it is not strictly a corporate social responsibility (CSR) program, it aligns with similar objectives of social good.

In Nepal, inVision has launched multiple initiatives such as partnered with the Kathmandu Marathon through the YourPace program, providing free running training, In 2024, we extended the program to include our driver partners and their children, ensuring that they benefit from fitness and wellness opportunities and to encourage participation, we awarded an e-bike to the winners

Moreover, we collaborated with the Nepal Center for Disaster Management (NCDM) to provide shelters for people affected by natural disasters, and among others.

These initiatives reflect our long-term vision of impacting the lives of 1 billion people by 2030. While we operate as a business, we ensure that a portion of our success is reinvested into the communities we serve.

Every nation is striving to attract FDI and open up its economy. Nepal should align its policies with this global trend to foster sustainable economic growth. A restrictive approach like the 70:30 rule risks deterring foreign businesses, reducing investment, and slowing progress.

inDrive remains committed to engaging in constructive dialogue with policymakers to find a balanced solution. We believe that a well-thought-out regulatory framework can create a win-win scenario for all stakeholders—our drivers, investors, and the broader community. By working together, we can ensure that Nepal remains a competitive and attractive destination for international businesses while also prioritizing local economic growth and employment opportunities.

Could the 70:30 rules hinder in drivers availability? Are we to introduce innovative service or technology in Nepal? How do you think?

The 70:30 rule could potentially complicate the availability of drivers for inDrive, as it introduces significant challenges in terms of resource allocation and future investment planning. This policy not only impacts the local business but also has wider implications for other verticals and regions where we operate. In essence, with the 70:30 rule, we are bound to face restrictions on how we distribute resources, making it more difficult to scale our operations and remain agile.

One of the main issues lies in the unpredictability of such policies. For instance, if the policy were to shift from a 70:30 split to something like 50:50 tomorrow, the resulting changes could create additional strain on our ability to make long-term decisions and investments. Investors, therefore, are likely to feel uncertain about the stability and consistency of the business environment.

In light of this, the key to navigating these challenges lies in policy consistency. Investors and companies need a predictable regulatory framework in order to make sound, long-term investments. Furthermore, it’s important to engage all stakeholders who are likely to be affected by such policies, as this dialogue is crucial to ensuring that everyone has a voice in shaping the future of the economy. In today’s global environment, where nations are in constant competition to attract foreign direct investment (FDI), such collaborative efforts can be crucial for fostering a sustainable and innovative business climate.

As for the introduction of innovative services or technologies in Nepal, the answer largely depends on how the local policy environment evolves. If it remains stable and conducive to business growth, we will certainly be in a position to introduce new services and technologies. However, without such consistency, it becomes much harder to justify the risks associated with new ventures.

Are similar regulations implemented in the market where drive upgrades are secondary? If so, how have they affected business dynamics?

Yes, it’s an important question. In most markets, there is a general trend toward economic liberalization, where regulations are designed to encourage competition and innovation. However, Nepal seems to be moving in the opposite direction, adopting policies that may hinder market openness. This is something that policymakers should examine more closely to ensure long-term economic benefits.

As a company, we are committed to supporting and engaging with regulatory bodies to provide insights into global best practices. Our goal is to help educate stakeholders about how similar markets have approached these challenges and what lessons can be applied to Nepal’s context. The adoption of new technologies and business models takes time, and identifying the right partners is a crucial part of that process. While we are open to collaborations, we believe in forming strategic partnerships that align with our vision and contribute to sustainable growth. This is a process that requires careful consideration, but we remain optimistic about working together with all stakeholders to find the best way forward.

How does this rule influence Nepal’s attractiveness for foreign investors, especially in the digital economy sector?

This rule is likely to significantly reduce Nepal’s attractiveness as a destination for foreign investors, particularly in the digital economy. Investors tend to seek stable and predictable regulatory environments where their businesses can operate without unexpected disruptions. When a large global company like inDrive sees potential risks due to such policies, it raises concerns for other investors as well. They may perceive Nepal as an uncertain investment landscape where regulatory decisions could adversely affect their operations at any time.

As a result, companies will exercise far greater caution before committing resources, which could slow down the inflow of foreign capital into Nepal. This hesitancy will not only impact large businesses but will also create ripple effects throughout the economy. A decline in foreign investment could limit job creation, reduce technological advancements, and curb the overall growth of Nepal’s digital sector.

Moreover, such regulatory uncertainty places unnecessary pressure on the broader economy. Foreign investments often contribute significantly to local communities by creating employment opportunities, fostering innovation, and supporting ancillary businesses. If investors decide to pull back or redirect their capital elsewhere, the people who will suffer the most are those who rely on the economic benefits generated by these investments—local entrepreneurs, service providers, and everyday citizens who depend on a thriving digital economy.

Ultimately, policies that create uncertainty can be detrimental to Nepal’s efforts to position itself as an attractive hub for digital businesses and startups. Instead of fostering innovation and investment, such rules could deter companies from expanding or even entering the Nepalese market in the first place. For sustainable economic growth, it is crucial to ensure that regulations support, rather than hinder, investment in emerging sectors like the digital economy.

So how does the rule intend consequences on driver’s income and job sustainability?

At inDrive, our commitment to Nepal, our driver-partners, and the communities we serve remains steadfast. We are dedicated to ensuring that our drivers’ earnings are not negatively affected by this regulation. Our priority has always been to provide a fair and sustainable platform where drivers can earn a stable income without unnecessary disruptions. Therefore, in terms of immediate financial impact, we will continue to honor our commitments and ensure that their income remains unaffected.

However, when it comes to long-term sustainability and there could be indirect consequences. While existing drivers will not see an immediate reduction in their earnings, the regulatory changes might influence our investment strategy for the future. If we are required to reassess certain expansion plans or operational investments, it could lead to delays in creating new opportunities. This means that the additional jobs and business opportunities that we had planned to introduce might not materialize as quickly as initially intended due to additional roadblocks placed by the authorities. .

In this sense, while the short-term impact on drivers’ earnings is minimal, the broader implications of this rule could slow downincomecreation and expansion efforts. Our focus remains on working within the regulatory framework while striving to find solutions that support both our driver-partners and the overall growth of the ride-hailing industry in Nepal.

How does this regulation affect the pricing of availability or overall consumer experience in the riding sector?

The 70:30 regulations do not affect the customer experience in any way. The experience is designed to be consistent and global, ensuring that regardless of location—whether you are riding in Nepal or São Paulo—customers can expect the same high level of service. From the moment a rider books their ride through the app until they are dropped off at their destination, the experience remains unchanged. This consistency is maintained throughout the entire journey and even after the ride is completed, ensuring that the regulatory changes do not interfere with the quality or accessibility of service.

Do you have any engagement with Nepali officials to discuss about this?

Yes, and that’s part of the reason why we are here. We are ready to meet with all parties in the best interest of the Nepali’s people, communities we serve and the country.

How often and is there any result or something progressive?

As I’m still relatively new to the company—this being my first role here—it’s been a very interesting start. We’ve just begun engaging with policymakers, and it’s been an exciting journey so far. My colleague, who leads our policy team in India, and I brought a senior team over to meet with the Department of Industry (DOI) here in Nepal. Few days ago, we also had the opportunity to meet with the Investment Board of Nepal. These meetings mark the beginning of our efforts to establish stronger connections and build lasting relationships with key stakeholders.

Our goal is to create a bridge for ongoing dialogue, to foster collaboration, and to support the improvement of the overall ecosystem. We’re committed to contributing to Nepal’s growth, and we want to ensure that we’re not just here to succeed on our own, but to support the success of the country and its policies as well.

In our discussions, we emphasized our commitment to the country’s progress and reiterated that we want the public and private sectors here to succeed just as much as we want to succeed ourselves. We invited policymakers to engage with us, to listen to our ideas, and to work together to shape policies that will benefit everyone involved. We’re hopeful that these initial steps will lead to tangible results and continued positive momentum.

What are the potential risks do you foresee in the broader ride hailing industry and digital economy in Nepal?

One of the main risks that could impact the ride-hailing industry and the broader digital economy in Nepal revolves around existing policies, such as the 70:30 regulation. This kind of policy may make Nepal less attractive to global players in the ride-hailing sector, potentially discouraging investments. If these restrictions remain in place, international companies might look elsewhere for growth opportunities, reducing the influx of new players who could bring in innovation, jobs, and competition to the market.

Choice is a significant factor in any market, and having multiple companies operating within a country typically benefits consumers by lowering prices and improving services. More players in the market can lead to more job creation, better income opportunities, and a more competitive environment, which ultimately serves the public’s interest. Without a thriving, competitive market, prices might remain high, and the quality of services could stagnate. Additionally, competition plays a critical role in encouraging businesses to innovate, thus benefiting consumers with enhanced options and lower costs.

While policies like the 70:30 regulation aim to balance interests, they may inadvertently push companies to explore more favorable environments in other countries like India or Bangladesh, which are becoming increasingly attractive for business investments. These regions may offer policies that are more conducive to growth, which could lead to a shift in attention away from Nepal. This shift could result in the country missing out on potential economic growth, job creation, and foreign investment.

From our side, we remain committed to supporting the government and its efforts to create a more dynamic and competitive digital economy. We recognize the government’s role in shaping the market, and we’re here to help fill the gaps in areas where they may face challenges. However, if the environment continues to be less welcoming for investment, we risk seeing opportunities slip away to neighboring countries that are positioning themselves as more attractive destinations for global players.

In summary, while policies are essential for a stable economy, overly restrictive measures might hinder the growth of the ride-hailing sector and digital economy in Nepal, limiting job creation, economic opportunities, and consumer benefits. The key to achieving sustainable growth lies in fostering a competitive, open environment that attracts investments and encourages innovation.

What alternative regulatory approaches would you suggest to promote both drivers and welfare of the industry growth in Nepal?

To foster the growth of both the driver community and the overall industry in Nepal, I would suggest adopting a more collaborative regulatory approach. It’s essential to create a platform for engagement between both the government and private sector stakeholders. Open communication and cooperation between the two sides would help align objectives, ensuring that both drivers’ welfare and the industry’s growth are prioritized.

By bringing the industry together, we can find solutions that benefit all parties involved—drivers, the local community, and the industry as a whole. We can also explore opportunities for technology transfer and capacity building, as we are already committed to investing in people and resources. This kind of collaboration can pave the way for more sustainable and effective growth within the sector.

Moreover, it’s important to recognize that government investment in certain areas is not universal across the globe. However, enhancing engagement and collaboration between the public and private sectors, especially through public-private partnerships, could create significant opportunities for the industry’s development. This level of partnership has proven successful in various countries and could lead to a more conducive environment for growth in Nepal’s transport sector.

How does inDrive envision its role in contributing to Nepal’s economic growth and digital innovation, despite regulatory challenges?

inDrive is deeply committed to supporting Nepal’s economic growth and advancing digital innovation, despite the regulatory challenges we’ve faced. We’ve been operating in Nepal for over three years, and our leadership includes a local Nepali, which further emphasizes our long-term commitment to the country.

Beyond just growing our business, we are focused on fostering the development of Nepal’s local ecosystem. Our aim is to bring the level of digital innovation and economic impact seen in other countries where we operate. One of the key ways we contribute is by creating income opportunities for drivers, improving living standards, and providing job prospects for those seeking a secondary income.

We view our presence in Nepal not just as an opportunity for business growth, but as a responsibility to support the local community. By staying committed to the country’s growth, we aim to continue providing meaningful opportunities that will positively impact the lives of many individuals.

How do you rate the Nepali market in terms of, market size and publishing or growing market?

When it comes to the Nepali market, we see it as one of the most promising emerging markets. It’s a key market for us, and the potential for growth is immense. We recognize that the future progress here is tremendous, with a significant runway for development, especially for our community. This growth is not just in terms of market size but also in terms of the long-term potential that Nepal offers.

However, it’s essential to understand that policies must align with the nature of the market. In Nepal, overly perfectionist or rigid policies have not proven to be successful. A more flexible, forward-thinking approach is needed—one that encourages growth and adaptation, rather than holding onto outdated, restrictive rules. We’ve seen that when policies are too restrictive, they often don’t yield the desired results.

For us, if inDrive succeeds in Nepal, it’s not just about us growing as a company. It’s about creating more opportunities for people-more jobs, better livelihoods, and broader benefits for the community. We want to see a positive spillover effect that extends beyond our operations, helping to elevate the local economy and improve people’s lives. That’s what we are committed to doing.

Moreover, we are ready and willing to work closely with policymakers. We are here to collaborate and contribute to a better future for Nepal. Success in this market would not only bring success to inDrive but also set a great example for how companies can work with communities and governments to make a meaningful difference. We’re committed to working together with all stakeholders, including the Investment Board, to drive progress and make a positive impact.

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