New Delhi: The Centre has revised its regulations for cab aggregators like Ola and Uber, allowing them to charge up to twice the base fare during peak hours, an increase from the earlier limit of 1.5 times. During non-rush hours, the minimum fare hike remains at 50%.
The newly issued Motor Vehicle Aggregator Guidelines (MVAG) 2025 also specify a penalty of 10% of the fare, capped at Rs 100, for drivers and passengers if a ride is canceled without a valid reason.
States are given three months to adopt the revised guidelines and can add additional provisions if needed. The fare regulation states that the fare set by state authorities for each vehicle category will be the base fare used by aggregators.
The guidelines specify that the base fare should cover at least three kilometers, accounting for dead mileage, including distances without passengers and the fuel used for pickups. Aggregators can offer fares that are at least 50% lower than the base fare or extend dynamic pricing up to a maximum of twice the base fare.
Passengers will not be charged for dead mileage unless the trip is under three kilometers. The fare will be calculated only from the pickup point to the drop-off point. Additionally, aggregators must provide a minimum insurance coverage of Rs 5 lakh for passengers.