Ola, Uber, Rapido Peak Hour Pricing: The government has now allowed cab aggregators such as Ola, Uber, and Rapido to charge up to twice the base fare during peak or rush hours and bad weather — an increase from the earlier cap of 1.5 times under surge or dynamic pricing.
This update comes as part of the revised Motor Vehicle Aggregator Guidelines, 2025, issued by the Ministry of Road Transport and Highways (MoRTH). The new rules are designed to balance user safety, driver welfare, and the business interests of aggregators.
Ola, Uber, Rapido: New Rules For Peak And Non-Peak Hours
Under the revised guidelines, cab aggregators are now allowed to charge at least 50% of the base fare during non-peak hours. The base fare for different vehicle types will be set by individual state governments, which have been urged to implement these changes within the next three months.
The government has also specified that the base fare must account for a minimum distance of 3 kilometres. This measure is intended to offset “dead mileage”—the fuel and distance covered by the driver to reach the passenger’s pickup point. However, passengers will not incur a separate charge for dead mileage unless the total trip is under 3 km. In all other cases, the fare will apply only to the distance between the pickup and drop-off points.
What’s New For Cab Aggregators
The revised guidelines aim to ensure fair earnings for drivers. Drivers who operate their own vehicles and are affiliated with aggregators must receive a minimum of 80% of the total fare collected, with the remaining 20% retained by the aggregator. Payments can be settled daily, weekly, or fortnightly, based on mutual agreement.
For vehicles owned by the aggregator and driven by hired drivers, the driver is entitled to at least 60% of the fare collected, while the aggregator may retain up to 40%.
Ola, Uber, Rapido: New Cancellation Rules
The government has also introduced new cancellation rules. If a driver cancels a ride after accepting it without a valid reason, a penalty of 10% of the fare—up to a maximum of ₹100—will be imposed. The same rule applies to passengers who cancel rides without a valid reason.
The cancellation fee collected from passengers will be divided between the driver and the aggregator, based on fare-sharing norms: at least 80% for drivers using their own vehicles and 60% for those using aggregator-owned vehicles.
Ola, Uber, Rapido: Major Revision Since 2020
In 2020, the Ministry of Road Transport and Highways introduced the Motor Vehicle Aggregator Guidelines under Section 93 of the Motor Vehicles Act, 1988. These guidelines established a regulatory framework for state governments to license and regulate cab aggregators within the road transport sector. (With inputs from IANS)
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