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New Cab Aggregator Rules Allow Fares Up to 2x During Peak Hours

Centre issues revised 2025 guidelines for Uber, Ola, Rapido; mandates insurance, stricter safety, and grievance redressal norms.

NEW DELHI: The Centre has permitted all cab aggregators such as Uber, Ola and Rapido to charge up to two times the base fare during peak hours, as against 1.5 times earlier, while for non-peak hours the fare has to be a minimum of 50 per cent of the base fare. Also, states have been advised to adopt the revised guidelines within three months, from date of their issue, and may include provisions in addition to the ones specified in the revised norms, according to the ministry of road transport and highways (MoRTH).

As per MoRTH’s fresh set of motor vehicle aggregator guidelines (MVAG) 2025, the aggregator shall be permitted to charge a minimum of 50 per cent lower than the base fare and a maximum dynamic pricing of two times the base fare specified under sub-clause (17.1). The new norms, however, aim to provide a light-touch regulatory system while addressing issues of safety and security of the user and the welfare of the driver.
“Also, 10 percent of the fare not exceeding Rs 100 shall be imposed on a driver if a ride is cancelled without a specified reason. A similar penalty will be imposed on a passenger for a similar cancellation. No passenger shall be charged for dead mileage, except when the distance for availing the ride is less than three kilometres. The fare shall be charged only from the point of origin of the journey to the point of destination where the passenger is dropped off,” the ministry said.
The ministry also said that the fare notified by the state government for the respective category or class of motor vehicles, shall be the base fare chargeable to passengers availing services from the aggregator. “States have been advised to adopt the revised guidelines within three months,” it said.
The guidelines also said that the Central government should develop and designate a portal to enable for single-window clearance of application for licence as aggregator. “The licence fee payable by the aggregator shall be Rs 5 lakhs and the licence shall be valid for a period of five years from the date of its issue,” it added.
As per MoRTH norms, aggregators have been mandated to ensure that drivers have health and term insurance of at least Rs 5 lakh and Rs 10 lakh respectively and guidelines also specified that a grievance officer shall be appointed by the aggregator.
“An aggregator shall not onboard vehicles which have been registered for more than a period of eight years from the date of initial registration of the vehicle and shall ensure that all vehicles onboarded by it should not have exceeded eight years since the date of initial registration of the vehicle,” the guidelines said.
For passengers’ safety, the guidelines also directed aggregators to ensure installation of the vehicle location and tracking devices (VLTDs) in vehicles and to make sure that VLTDs are functional all the time.
“Further, cab aggregators should make certain that the driver follows the route indicated in the app through an in-built mechanism and in case of any deviation, the app shall signal the control room, which shall then connect with the driver and the passenger immediately,” it said.
( Source : Deccan Chronicle )
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