Govt allows Ola, Uber to charge 2X base fare during peak hours
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New Delhi: The Ministry of Road Transport and Highways (MoRTH) has released the revised Motor Vehicle Aggregator Guidelines, 2025, allowing cab aggregators such as Uber, Ola, and Rapido to charge up to twice the base fare during peak hours. This marks an increase from the previous cap, which permitted a maximum surge pricing of 1.5 times the base fare.
The updated guidelines, announced on Tuesday, also permit aggregators to charge as low as 50 per cent of the base fare during non-peak hours. The base fare will be determined by the state government for each vehicle category or class, and this fare will serve as the minimum charge for passengers availing services through the aggregator platforms.
To account for dead mileage — the distance travelled without a passenger, including travel to the pickup point — the new rules specify that the base fare should cover a minimum of three kilometres. However, passengers cannot be charged separately for dead mileage unless the total journey is less than three kilometres. In such cases, fare will only be calculated from the origin to the drop-off point.
The revised guidelines also lay out revenue-sharing norms between aggregators and drivers. Drivers onboarded along with their own vehicles must receive at least 80 per cent of the total fare, which includes all driver-related costs. The remaining amount can be retained by the aggregator as its apportioned share. Payments to drivers can be settled on a daily, weekly, or fortnightly basis, as agreed upon between the aggregator and the driver.
In cases where the aggregator owns the vehicle and the driver is onboarded, the driver must be paid at least 60 per cent of the applicable fare. The rest will be retained by the aggregator.
Addressing the issue of ride cancellations, the guidelines stipulate a penalty of 10 per cent of the fare, capped at ₹100, for both drivers and passengers who cancel rides without valid reasons. If a driver cancels a trip after accepting it, or if a passenger cancels without justification, the penalty will apply.
