The Centre has allowed cab aggregators such as Ola and Uber to charge up to twice the base fare during peak hours, up from 1.5 times previously, and at least 50% during non-rush hours.

A driver will be fined 10% of the fare up to Rs 100 if a ride is canceled without a reason, according to the Ministry of Road Transport and Highways' new set of Motor Vehicle Aggregator Guidelines (MVAG) 2025. If a passenger cancels, they will be subject to a similar penalty.

Key Highlights

• Govt allows Ola, Uber, Rapido to charge up to 2× base fare during peak hours.
• Penalty for driver or passenger cancellation without valid reason set at 10% of fare (max ₹100).

States have been advised to implement the revised guidelines within three months of their publication, and may include provisions in addition to those specified in the revised norms. 

In terms of fare regulation, the ministry stated in sub-clause 17.1 of the guidelines that "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".

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The guidelines stated that no passenger shall be charged for dead mileage unless the distance for availing the ride is less than three kilometers. "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," according to the statement.

The government mandated that the aggregator provide a minimum of Rs 5 lakh in passenger insurance.

It added: "The base fare chargeable shall be for a minimum of three (3) kilometers to compensate for dead mileage, which includes the distance travelled without a passenger as well as the distance travelled and fuel used to pick up the passenger(s)."

The government also stated that "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 in sub-clause (17.1) above."