Govt allows cab aggregators to charge up to 2-times of base fare during peak-hours

The road transport ministry has allowed 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.

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The Ministry of Road Transport and Highways in its ‘Motor Vehicles Aggregator Guidelines 2025' said "the aggregator shall be permitted to charge a minimum of 50 per cent lower than the base fare anda maximum dynamic pricing of two times the base fare specified under sub-clause (17.1)."

Moreover, the base fare chargeable shall be for a minimum of three kilometers to compensate for "dead mileage" -- including the distance travelled without a passenger and the distance travelled and fuel utilized for picking up the passenger(s). As per the guidelines, 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. In case of cancellations, a penalty of 10 per cent of the fare not exceeding Rs 100, shall be imposed on the driver, if the cancellation is made without a reason identified as valid by the aggregator.