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Rush-hour cab rides may now cost twice the base charge

Rush-hour cab rides may now cost twice the base charge

Time of India9 hours ago
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The ministry of road transport and highways has allowed cab aggregators to charge up to two times the base fare during peak hours, as against 1.5 times earlier, while for non-peak hours the fare could drop to a minimum of 50% of the base fare.The move is expected to benefit cab aggregators like Ola and Uber, among others. Besides, the ministry has advised states to adopt the revised guidelines within three months."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)," the ministry said in its Motor Vehicles Aggregator Guidelines 2025 issued on Monday.Moreover, the base fare chargeable shall be for a minimum of three kilometres to compensate for "dead mileage", including the distance travelled without a passenger and the distance travelled and fuel utilised for picking up the passengers.As per the guidelines, the fare notified 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.In case of cancellations, a penalty of 10% of the fare not exceeding ₹100 shall be imposed on the driver, if the cancellation is made without a reason identified as valid by the aggregator.A similar penalty will be imposed on the passenger when such cancellation is made without a valid reason.The guidelines said the central government shall develop and designate a portal to enable for single-window clearance of application for licence as aggregator. "The licence fee payable by the aggregator shall be Rs 5 lakh and the licence shall be valid for a period of five years from the date of its issue," it said. Aggregators have been mandated to ensure that drivers have health and term insurance of at least ₹5 lakh and ₹10 lakh, respectively.Besides, it mandates appointment of grievance officers by the aggregators while restricting the use of vehicles older than eight years from the date of registration.
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