Latest news with #MotorVehicleAggregatorGuidelines2020
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First Post
a day ago
- Automotive
- First Post
2X surge pricing: Why Ola, Uber rides will cost more during peak hours
The Centre has released new guidelines for ride-hailing platforms. Cab aggregators such as Uber, Ola and Rapido can now charge twice the base fare during peak hours, up from the previous 1.5 times. The new rules also allow these companies to operate private bikes as taxis read more A motorbike driver uses the Uber mobile application for Uber Moto rides in New Delhi, India, June 14, 2023. File Photo/Reuters Cab rides at rush times are set to get expensive in India. The Centre has revised rules for ride-hailing apps, allowing cab aggregators such as Uber, Ola and Rapido to charge twice the base fare during peak hours. Previously, the cap on the surge price or dynamic fare during peak hours was 1.5 times the base fare. This will change after the new Motor Vehicle Aggregator Guidelines (MVAG), 2025, were issued by the Ministry of Road Transport and Highways (MoRTH) on Tuesday (July 1). STORY CONTINUES BELOW THIS AD Let's take a closer look. What are the new rules for cab services? Cab aggregators can soon charge up to two times the base fare during the peak hours. The Centre has also permitted them to charge a minimum of 50 per cent of the base fare during non-rush hours. The new guidelines also state that if a driver cancels the ride without a valid reason, a penalty of 10 per cent of the fare, not exceeding Rs 100, will be imposed. If a passenger cancels the ride without a valid reason, they will be charged similarly. The ministry said on the regulation of fees, 'The fare 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.' If a state has not decided on a base fare, the aggregator will have to specify the charge to the state government, as per a Times of India (TOI) report. 'The base fare chargeable shall be for a minimum of three km to compensate for dead mileage including the distance travelled without a passenger and the distance travelled and fuel utilised for picking up the passenger,' according to the new guidelines. The Centre has revised the cap on the surge price charged by cab aggregators. File Photo/Reuters Ride-hailing platforms cannot charge dead mileage to passengers, except when the distance for availing the ride is less than three kilometres. '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,' the government's guidelines say. The Centre has directed the state governments to adopt the revised guidelines within three months. STORY CONTINUES BELOW THIS AD The government has revised the Motor Vehicle Aggregator Guidelines 2020 to bring the regulatory framework up to date with the developments in the motor vehicles aggregator ecosystem. Insurance for drivers & more The revised guidelines also permit the use of non-transport (private) motorcycles as taxis. 'The State Government may allow aggregation of non-transport motorcycles for journey by passengers as shared mobility through aggregators, resulting in reduced traffic congestion and vehicular pollution, along with providing, inter alia, affordable passenger mobility, hyperlocal delivery, and creating livelihood opportunities,' the notification stated. States can levy daily, weekly, or fortnightly fees on aggregators for the use of such motorcycles, as per Clause 23 of the guidelines. The guidelines come as a relief for bike taxi operators, including Rapido, Ola and Uber, who have long operated in a legal grey area. Recently, Karnataka's ban on bike taxis triggered widespread protests. The revised rules also make insurance cover mandatory for drivers associated with cab aggregators. Each driver should be provided with a health insurance cover of Rs 5 lakh and a term insurance policy of Rs 10 lakh. STORY CONTINUES BELOW THIS AD Cab services hail new rules Popular ride-hailing apps, including Uber and Rapido, have welcomed the government's new guidelines. Uber has said the new rules will lead to innovation and regulatory clarity. 'Timely adoption by states will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders. We commend the ministry for its consultative and balanced approach,' a company spokesperson said. A man drives an Uber electric car on a road in New Delhi, India, August 28, 2023. File Photo/Reuters Rapido has specifically lauded Clause 23 of the MVAG 2025, which allows aggregators to operate private motorcycles for passenger journeys. The company has described the move as a 'milestone in India's journey towards a Viksit Bharat'. With inputs from agencies
News18
a day ago
- Automotive
- News18
Ola, Uber Can't Run Cars More Than 8 Years Old As Centre Caps Vehicle Age For Cab Aggregators
Last Updated: The Government has also mandated that drivers undergo a psychological analysis conducted by the aggregator to determine whether 'they are fit to be on-boarded'. The Ministry of Road Transport and Highways has imposed an age limit on vehicles that can be used by an aggregator – including Ola, Uber and Rapido – for operations to eight years from none earlier. The Ministry issued the Motor Vehicles Aggregator Guidelines, 2025 on Tuesday. The new guidelines not only bar cab aggregators from onboarding vehicles older than eight years, but also require them to deregister those that exceed the age limit. '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," the Ministry said. The government has also made it mandatory to display a copy of driver's licence and the motor vehicle permit inside the motor vehicle, except motorcycles. 'The said display shall be on the back side of the front seat next to the driver in such a manner as shall be clearly visible to the passengers in the motor vehicle," the Ministry said. The guidelines also stated that the app should display a clear and high-resolution picture of the driver on-boarded on the app of the aggregator. The Ministry has mandated that drivers undergo a psychological analysis conducted by the aggregator to determine whether 'they are fit to be on-boarded". Explaining this, a MoRTH official said that the cab providers need to assess the driver's mental and emotional health through a psychological evaluation. 'This has to be done by the aggregator. The aim is to check if the driver is mentally stable, emotionally balanced, and fit to handle the stress of driving and interacting with passengers," the official explained. These additions mark a shift toward stricter standardisation in aggregator vehicles. So far, these were not mentioned in the guidelines. The currently used guidelines are from 2020 when the Ministry of Road Transport and Highways Issued the 'Motor Vehicle Aggregator Guidelines 2020" under Section 93 of the Motor Vehicles Act, 1988. The guidelines provided a regulatory framework for State Governments to Issue licences and regulate aggregators in the road transport sector. 'Now, the Motor Vehicle Aggregator Guidelines 2020 have been revised to keep the regulatory framework up to date with the developments in the motor vehicles aggregator ecosystem. The new guidelines (Motor Vehicles Aggregator Guidelines, 2025) attempt to provide a light-touch regulatory system while attending to issues of safety & security of the user and the welfare of the driver," the Ministry said. No Change In Fare Share Ratio, But Payment Delays Capped The government has retained the existing fare-sharing ratio between drivers and aggregators but has now mandated a time limit for fare settlements. As per the revised guidelines, drivers – onboarded along with their vehicles – must receive at least 80 per cent of the total applicable fare, including all components under the driver's share. The remaining amount may be retained by the aggregator as Apportioned Fare. 'The payment may be settled daily, weekly, or fortnightly, but not beyond that, as per the agreement between the driver and the aggregator," the Ministry stated.
News18
2 days ago
- Automotive
- News18
Ola, Uber Can Now Charge Double During Peak Hours, Bad Weather. Here's How It Will Hurt Your Pocket
Last Updated: If the base fare of a ride is Rs 100, the minimum the cab providers have to charge is Rs 50 and they can take it up to Rs 200 under surge pricing The Ministry of Road Transport and Highways has allowed cab aggregators—including Ola, Uber and Rapido—to charge up to twice the base fare from passengers under dynamic pricing during rush or peak hours and bad weather. The ministry issued the Motor Vehicles Aggregator Guidelines, 2025, on Tuesday that also allowed the cab providers to lower the fare up to 50 per cent below the base fare during off-peak or low-demand periods. State governments have three months to adopt the revised guidelines. So far, while the minimum limit was 50 per cent lower than the base fare, the upper limit was 1.5 times only. '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," the ministry said. Impact on Pocket So, if the base fare of a ride is Rs 100, the minimum the cab providers have to charge is Rs 50 and they can take it up to Rs 200 under surge pricing. State governments will set and notify base fares for each vehicle category. 'The base fare chargeable shall be for a minimum of three (3) kilometers 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)," MORTH said in the policy. The ministry also said that no passenger will be charged for dead mileage, except when the pickup point is less than three kilometres from the cab's location. In cases where the distance is more than 3 kilometres, the fare will apply only from pickup to drop-off—not for the distance covered to reach the passenger. No Change In Cancellation Charges In case a passenger cancels a booking after confirmation on the app, a fee of 10 per cent of the fare, not exceeding Rs 100, can be collected, when such cancellation is made without a valid reason and duly and specifically mentioned on the website and app of the aggregator, the ministry said. This amount will have to be divided between the driver and the aggregator. Revision after 2020 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. The guidelines provided a regulatory framework for state governments to issue licences and regulate aggregators in the road transport sector. '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, introduction of electric vehicles (EVs), and auto-rickshaw rides, has widened the consumer base," the Ministry explained. As the travel preferences evolve, aggregators have expanded their services to meet these new demands through innovative models. 'The Motor Vehicle Aggregator Guidelines 2020 have been revised to keep the regulatory framework up to date with the developments in the motor vehicles aggregator ecosystem. The new guidelines attempt to provide a light-touch regulatory system while attending to issues of safety & security of the user and the welfare of the driver," the ministry stated.
Time of India
2 days ago
- Automotive
- Time of India
Govt issues advisory allowing use of personal two-wheelers as bike taxis; states to take final call
Academy Empower your mind, elevate your skills The road transport and highways ministry issued revised guidelines advising state governments to permit the use of personal motorcycles as taxis through aggregators, marking the first time the Centre has explicitly urged states to allow motorcycle taxi services using non-commercial two-wheelers. Ride-hailing platforms , while welcoming the development, indicated that timely implementation of the guidelines by the states would be revised guidelines say that states may allow aggregation of personal motorcycles for shared mobility services through aggregators, which could result in 'reduced traffic congestion and vehicular pollution, along with providing inter alia affordable passenger mobility, hyperlocal delivery, creating livelihood opportunities'.The advisory follows the Karnataka High Court's ban on motorcycle taxis in the absence of clear regulations governing such ride-hailing guidelines also say that states may impose fees on the aggregator for issuance of authorisations permitting non-commercial motorcycles for taxi operations on a daily, weekly or fortnightly basis, as may be determined by the state's government."The Motor Vehicle Aggregator Guidelines 2020 have been revised to keep the regulatory framework up to date with the developments in the motor vehicles aggregator ecosystem. The new guidelines (Motor Vehicles Aggregator Guidelines, 2025) attempt to provide a light-touch regulatory system while attending to issues of safety & security of the user and the welfare of the driver," the road transport and highways ministry said in a letter to the state the implementation of these guidelines will be finally decided by the states, ride-hailing platforms welcomed the move.'By recognising non-transport motorcycles as a means of shared mobility, the government has opened the door to more affordable transportation options for millions, especially in underserved and hyperlocal areas,' said urban mobility platform Rapido An Uber spokesperson said, 'Timely adoption by states will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders'.
Time of India
19-06-2025
- Automotive
- Time of India
Bike taxi drivers allege harassment by auto unions over plan to protest ban; demand legal framework
After the bike taxi ban came into effect on June 16, over 100 drivers from aggregator platforms such as Ola, Uber, and Rapido in Karnataka alleged harassment by auto unions and said they were denied permission to protest at Freedom Park due to pressure from such groups. The drivers, part of the Namma Bike Taxi Association , submitted a petition on Thursday, demanding legal recognition of bike taxis and a clear policy framework to end harassment and regulatory confusion. 'Last year, Karnataka saw over eight crore bike taxi rides. We're not asking for favours, we're asking for the right to work legally and safely,' said Mohammed Salim, president of the association. Representatives of the bike taxi drivers also met Karnataka Health Minister Dinesh Gundu Rao and Dasarahalli MLA S Muniraju on Thursday, seeking urgent intervention to reverse the ongoing crackdown on bike taxi services in the state. The meeting follows a series of open letters addressed to chief minister Siddaramaiah, Congress president Mallikarjun Kharge, and MP Rahul Gandhi, none of which have elicited a response. The association said it's ironic on the government's part, as they were the ones to pass a Gig Worker Welfare Bill just last month, while banning a sector that offers flexible income to thousands. Salim said over 300 drivers are calling him daily, seeking help. 'And I don't know what to tell them. Should we lose our livelihoods because the government has no policy for bike taxis? We don't want chaos. We need regulation, not a ban,' he said. Commuters face the brunt Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Daily commuters said they have been feeling the pinch since the ban, with auto fares rising sharply. Many also complained of frequent booking cancellations unless they added high tips. Several commuters have called for a public consultation on the issue and urged the government to withdraw the ban. 'Auto fares are going through the roof. I used to pay Rs 50 on a bike taxi, now autos charge Rs 100 to Rs 150 for the same distance,' said a college student in the city. The union pointed out that despite the Motor Vehicle Aggregator Guidelines 2020 from the Centre recognising bike taxis, Karnataka is yet to formulate corresponding rules. 'The state's 2021 Electric Bike Taxi Policy was also quietly withdrawn in 2024, leaving thousands of drivers without regulatory protection,' it said in a statement. With the ban in full effect, bike taxi drivers are facing a tough time earning a living. Imran M, a father of two who uses the aggregator apps, said, 'I've borrowed twice already this month. My daughter's school is asking for fees, and I have nothing left.' Similarly, Sathish, a 26-year-old driver who treated ferrying passengers as his regular job, said, 'Delivery partners can use the same bike to deliver food, but I get fined for giving someone a ride. Where's the logic in that?'
