During non-peak times, fares cannot drop below 50% of base price
The Ministry of Road Transport and Highways has updated its Motor Vehicles Aggregator Guidelines, granting ride-hailing services like Ola and Uber the ability to double fares during peak hours, up from the previous 1.5× multiplier.
In contrast, during non-rush periods, these platforms cannot charge less than 50% of the base fare, ensuring a consistent minimum rate throughout the day.
The new rules also introduce a 10% cancellation fee (capped at ₹100) applied equally to drivers and riders for unjustified cancellations.
States are required to implement these updated guidelines within three months of issuance.
To compensate drivers for “dead mileage,” the minimum base fare will now cover at least three kilometers—including the journey without a passenger and the trip to the passenger’s pick-up location.
Driver earnings are clearly defined:
- For driver-owned vehicles, drivers must receive 80% of the total fare.
- For aggregator-owned vehicles, the minimum guaranteed share is 60% of the fare.
Regarding safety and regulation:
- Aggregators must install vehicle-tracking devices linked to state integrated command-and-control centres.
- They are also required to maintain 24/7 control rooms and ensure uninterrupted vehicle operations and driver availability.
These revised guidelines aim to standardize fare mechanisms, driver earnings, and safety measures for cab services across India.
