Govt allows cab aggregators to charge up to 2X of base fare during peak hours
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.
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 1.5X earlier, while for non-peak hours, the fare has to be a minimum of 50% of the base fare.
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 and a 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 kilometres to compensate for "dead mileage"—including the distance travelled without a passenger and the distance travelled and fuel utilised 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.
A similar penalty will be imposed on the passenger when such cancellation is made without a valid reason.
The guidelines said the Central government shall develop and designate a portal to enable for single-window clearance of applications for a licence as an 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 said.
Aggregators have been mandated to ensure that drivers have health and term insurance of at least Rs 5 lakh and Rs 10 lakh, respectively.
The 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," as per the guidelines.
To ensure passengers' safety, the aggregators have been directed to ensure installation of the Vehicle Location and Tracking Devices (VLTD) in vehicles and to make sure that Vehicle Location and Tracking Devices 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.
As per the guidelines, the aggregator shall establish a call centre with an active telephone number and e-mail address, displayed clearly on its website and on the App, which shall be operational 24x7, providing assistance in English and along with the official language of the state.
"The aggregator shall mandatorily adhere to the targets fixed for inclusion of electric vehicles in their fleet," the guidelines said, adding that the targets shall be fixed by an appropriate government organisation responsible for regulating air quality or by the state government.
In 2020, the Ministry of Road Transport and Highways issued the "Motor Vehicle Aggregator Guidelines 2020" under Section 93 of the Motor Vehicles Act, 1988.
Since 2020, India's shared mobility ecosystem has undergone rapid and significant change. The rise in demand for diverse and flexible mobility solutions, including bike-sharing, the introduction of electric vehicles (EVs), and auto-rickshaw rides, has widened the consumer base.
The new guidelines attempt to provide a light-touch regulatory system while attending to issues of safety and security of the user and the welfare of the driver.