New Rules For Ola, Uber On Peak-Hour Pricing, Cancellations Announced

The Centre has allowed cab aggregators such as Ola and Uber to charge up to twice the base fare, as against the 1.5 times earlier, during peak hours and not less than 50% during non-rush hours.

In a fresh set of Motor Vehicle Aggregator Guidelines (MVAG) 2025,  the Ministry of Road Transport and Highways on Tuesday also said 10% of the fare not exceeding Rs 100 shall be imposed on a driver if a ride is cancelled without a specified reason. A similar penalty will be imposed on a passenger for a similar cancellation.

States have been advised to adopt the revised guidelines within three months, from date of their issue, and may include provisions in addition to the ones specified in the revised norms. 

On the regulation of fares, the ministry said: "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", under sub-clause 17.1 of the guidelines.

It added: "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 utilized for picking up the passenger(s)." 

The government also said "the aggregator shall be permitted to charge a minimum of 50% lower than the base fare and a maximum dynamic pricing of two times the base fare specified under sub-clause (17.1) above." 

No passenger shall be charged for dead mileage, except when the distance for availing the ride is less than three kilometres, the guidelines said. "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 added. 

The government said the aggregator shall ensure a minimum amount of Rs 5 Lakh as insurance for passengers.