How new rules may change your app-cab rides
Any changes in how the fare is calculated?
The new guidelines allow aggregators to implement dynamic pricing based on demand, within limits. Simply put, dynamic pricing, or surge pricing, is when fares fluctuate in real time based on demand and supply—like during airport rush hours. States can set a base fare for the first three kilometres—say ₹100. Depending on demand, the fare can range from ₹50 (50% below) to ₹200 (twice the base). If a state hasn't set a fare, the aggregator can notify one temporarily. Dynamic pricing has long angered driver unions and customers, so the new limits aim to ensure fare predictability.
What happens to bike taxis?
The guidelines give state governments the legal framework to permit bike taxis using non-transport (private) motorcycles through aggregators. This move ends years of regulatory ambiguity and puts the ball in the state's court. States can now authorize operations, impose fees, and ensure compliance mechanisms. Legal experts call it a crucial shift that could legitimize bike taxis and boost investor confidence. But policy is uneven—Karnataka has imposed a ban, while Maharashtra allows only e-bikes. The sector's future now hinges entirely on how individual states respond to this enabling legal framework.
Who pays for cancelled rides now on?
If a driver cancels a ride without a valid reason, they are fined 10% of the fare, up to ₹100. Ditto, if a passenger cancels without a valid reason. 'Valid reasons' must be clearly listed on the aggregator's app. While the passenger pays directly, it's unclear who bears the cost when drivers cancel—the driver or aggregator—leaving it to platform policy.
Will costs increase for aggregators?
Yes, the guidelines add tighter compliance standards on aggregators: States can mandate annual targets for EV adoption. Aggregators can face licence suspension for up to three months, followed by cancellation for repeat offence. Fines ranging from ₹1 lakh to ₹1 crore may be levied for violations like overcharging, safety lapses and breach of contract. A centralized portal will handle licence applications, deposits, and renewals. It also imposes an age cap—vehicles over eight years old can no longer be onboarded.
What's in it for drivers of app-based cabs?
Drivers can operate across multiple aggregators without restriction. Firms must provide a minimum of ₹5 lakh in health insurance and ₹10 lakh in term insurance per driver, with yearly increases as notified by the Centre. Earnings are protected: drivers get at least 80% of the fare if using their own vehicles, and 60% if driving aggregator-owned ones. Fare settlements must be processed daily, weekly, or at most, every fortnight. Mandatory structured onboarding covers app training, and legal awareness.
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