New Delhi– The Indian government has approved new rules allowing ride-hailing platforms like Ola, Uber, and Rapido to charge up to twice the base fare during peak hours—an increase from the previous cap of 1.5 times the base rate.
The update comes under the revised Motor Vehicle Aggregator Guidelines, 2025, released by the Ministry of Road Transport and Highways (MoRTH). The new rules are aimed at balancing user affordability, driver welfare, and operational sustainability for aggregators.
As part of the changes, ride-hailing companies can also charge as little as 50% of the base fare during non-peak hours, offering pricing flexibility based on demand.
The “base fare” will be defined and notified by the respective state governments and will vary depending on the vehicle type or category. States have been advised to implement the revised guidelines within three months.
The government has clarified that the base fare must cover a minimum distance of 3 kilometers to account for “dead mileage”—the distance a driver travels to reach the passenger’s pickup location. Passengers will not be charged extra for this dead mileage unless the total trip is under 3 kilometers. In all other cases, the fare is calculated only from pickup to drop-off.
The guidelines also ensure fair compensation for drivers. Drivers who own their vehicles and operate under aggregator platforms must receive at least 80% of the fare collected, while the aggregator can retain up to 20%. Payments can be settled daily, weekly, or fortnightly, depending on the agreement between the driver and the company.
For vehicles owned by the aggregator and operated by hired drivers, the driver must receive at least 60% of the fare, with the aggregator keeping the remainder.
The government has also introduced clear rules around cancellations. If a driver cancels a confirmed ride without a valid reason, they will be fined 10% of the fare, up to a maximum of ₹100. The same penalty applies to passengers who cancel rides without justification. (Source: IANS)
