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Govt permits surge fares of up to 2x base rate for cab aggregators
The announcement was made by the Ministry of Road Transport and Highways (MoRTH) in the new Motor Vehicle Aggregator Guidelines (MVAG) 2025. The Centre has allowed the states three months to adopt the revised guidelines. In the event of any cancellation from the driver's side after accepting a ride, a ten per cent of the fare, not exceeding ₹100, will be imposed, if it is cancelled without any specific reason, MoRTH announced. A similar penalty has also been announced for the passengers for any cancellation without a specific reason.
Cab aggregators have also been mandated to ensure that the drivers have health and term insurance of at least ₹5 and ₹10 lakh, respectively.
The new guidelines also clearly state that the state governments must notify the base fare for different categories of vehicles, which include bike taxis and auto rickshaws, brought under the ambit of the MVAG policy.
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