Ola, Uber fares may rise as Centre allows cab aggregators to charge two times of base fare during peak hours

Indian Express

20 hours ago

The fares of online cab aggregators, like Uber, Ola and Rapido, may see a hike as the government has allowed the companies to charge up to two times of the base fare during the peak hours.
Earlier, the vehicle aggregators could charge 1.5 times the base fare as surge price or dynamic fare during peak hours.
In a revised Motor Vehicle Aggregator Guidelines, 2025, released Tuesday, the Ministry of Road Transport and Highways (MoRTH) said that during non-peak hours, the aggregators can charge a minimum of 50 per cent of the base fare.
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 states have been advised to adopt the revised guidelines within three months.
'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,' the guidelines read.
According to the guidelines, no passenger can be charged for dead mileage except when the distance for availing the ride is less than three kilometres and the fare shall be charged only from the point of origin of the journey to the point of destination where the passenger is dropped off.
It further stated that the driver onboard, along with the motor vehicle with the aggregator, shall receive at least 80 per cent of the fare applicable, including all cost under driver's fare and the remaining charges may be retained as the apportioned fare by the aggregator. The payment may be settled daily, weekly or fortnightly but not later as per the agreement between the driver and the aggregator.
'With respect to motor vehicles owned by the aggregator the on-boarded driver shall receive at least 60% of the fare applicable, including all costs specified in Driver Fare and the remaining charges shall be retained as the Apportioned Fare,' the revised guidelines stated.
On cancellation, it says that if a ride is cancelled by the driver after accepting the journey, in that case, a penalty of 10 per cent of the fare, not exceeding Rs 100, shall be imposed where such cancellation is made without a valid reason.
Similarly, if a passenger cancels the ride without valid reason, a penalty of 10 per cent of the fare, not exceeding Rs 100, will be imposed.
The Ministry added that the new guidelines, which is a revised version of its 2020 order, is an attempt to provide light-touch regulatory system while attending to issues of safety and security of the user and welfare of the driver.
Dheeraj Mishra is a Principal correspondent with The Indian Express, Business Bureau. He covers India's two key ministries- Ministry of Railways and Ministry of Road Transport & Highways. He frequently uses the Right to Information (RTI) Act for his stories, which have resulted in many impactful reports. ... Read More