Ola, Uber New Rules: From 2x surge pricing to 10% cancellation charges — 5 things passengers and drivers must know
The Ministry of Road Transport and Highways in its guidelines has advised states to adopt the revised guidelines within three months.
Here are 5 key points from the new 'Motor Vehicles Aggregator Guidelines 2025' that may affect passengers and drivers.
Your daily commute to office or journeys during peak hours are set to cost extra as the government has permitted Ola, Uber, Rapido and other cab aggregators to charge 2x surge prices during these periods.
The Centre said that 'the aggregator shall be permitted to charge a minimum of 50 per cent lower than the base fare and a maximum dynamic pricing of two times the base fare specified under sub-clause (17.1),' it said.
Amid a surge of complaints from customers over Ola, Uber and Rapido drivers cancelling rides repeatedly, the government has recommended that a 10 per cent fee not exceeding ₹ 100 should be paid by the driver in case they choose to cancel without valid reasons.
'In case of cancellations, a penalty of 10 per cent 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,' according to the new rules.
To ensure passengers safety, cab aggregators have been asked to ensure installation of the Vehicle Location and Tracking Devices (VLTD) in vehicles and to make sure that Vehicle Location and Tracking Devices are functional all the time. that the driver follows the route indicated in the App.
Aggregators have been asked to ensure that drivers follow the route visible on the app through an in-built mechanism. It added that 'in case of any deviation, the App shall signal the control room, which shall then connect with the driver and the passenger immediately.'
The latest guidelines for Ola, Uber, Rapido and other aggregators also mandates that drivers recruited by the companies receive at least 80 per cent of the fare.
'The driver onboarded along-with the motor vehicle with the aggregator shall receive at least 80% of the fare applicable including all cost under driver's fare and the remaining charges may be retained as the Apportioned Fare by the aggregator,' the memo said.
The payment can be settled daily, weekly or fortnightly but not later as per the agreement between the driver and the aggregator, it said.
Aggregators have been mandated to ensure that drivers have health and term insurance of at least ₹ 5 lakh and ₹ 10 lakh respectively. Companies like Ola, Uber and Rapido have been asked to — 'Ensure a health insurance for not less than ₹ 5 Lakh for each driver on-boarded, which shall be increased each year by such percentage each driver as notified by the Central Government.'
5 Lakh for each driver on-boarded, which shall be increased each year by such percentage each driver as notified by the Central Government.' 'Ensure a term insurance for not less than Rs. 10 Lakh for each driver on-boarded, which shall be increased each year by such percentage as notified by the Central Government.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NDTV
7 hours ago
- NDTV
Ola, Uber New Rules: Pricing, Cancellation, And More, What Drivers And Passengers Must Know
The central government has announced new regulations under the 'Motor Vehicles Aggregator Guidelines 2025' that are expected to reshape the operations of cab aggregators like Ola, Uber, and Rapido. These guidelines, issued by the Ministry of Road Transport and Highways, advise states to adopt the revised norms within the next three months. Here are five key points from the new guidelines that could impact both passengers and drivers: Surge Pricing Increased: Cab aggregators can now charge up to double the base fare during peak hours (previously 1.5 times). Minimum Fare During Off-Peak: A minimum of 50% of the base fare can be charged during non-peak hours. Minimum Distance for Base Fare: The base fare must cover a minimum distance of 3 kilometres. Fairer Driver Compensation: Drivers owning their vehicles must receive at least 80% of the total fare collected; aggregator-owned vehicle drivers must get at least 60%. Both Drivers and Passengers Face Cancellation Penalties: The government has also set new rules for cancellations. If a driver cancels a ride after accepting it without a valid reason, a penalty of 10 per cent of the fare - up to a maximum of Rs 100 - will be charged. The same rule applies to passengers who cancel a ride without a valid reason. Meanwhile, India's ride-hailing and bike-taxi industry has welcomed the government's new Motor Vehicle Aggregator Guidelines (MVAG) 2025, calling it a major step toward regulatory clarity, innovation, and expanded affordable mobility across the country. The Ministry of Road Transport and Highways on Tuesday issued the Motor Vehicle Aggregator Guidelines (MVAG) 2025, providing long-awaited regulatory clarity for India's shared mobility sector by officially permitting states to allow the use of non-transport (private) motorcycles for passenger rides through aggregator platforms. This move brings relief to bike taxi operators like Rapido and Uber, who have long operated in a legal grey area, especially in states like Karnataka, where a recent ban on bike taxis had led to increased tensions and widespread protests. Major industry players, including Uber and Rapido, have welcomed the move, acknowledging its potential to drive innovation, expand affordable mobility, and create new livelihood opportunities.
Hindustan Times
12 hours ago
- Hindustan Times
Govt proposes psychological test for cab aggregator drivers
The Union government has proposed that drivers onboarded by cab aggregator platforms such as Ola, Uber, and others undergo a psychological analysis to determine whether they are fit to be onboarded. These proposals are part of the Motor Vehicles Aggregator Guidelines (MVAG), 2025, notified on Tuesday. Govt proposes psychological test for cab aggregator drivers The psychological test, among many other proposals, has been introduced by the centre aimed at regulating fares, increasing passenger safety, reducing pollution and safeguarding the interests of drivers from the platforms. To be sure, most of the clauses of these guidelines will only come into effect if states choose to implement them. To protect consumers and encourage competition, the ministry of road transport and highways has proposed that platforms can now charge up to a maximum of twice the base fare during peak hours and a minimum of 50% of the base fare during lean hours. The centre's new policy mandates that the driver must receive at least 80% of the applicable fare and ensure drivers have health and term insurance of at least ₹ 5 lakh and ₹ 10 lakh, respectively, and a minimum of ₹ 5 lakh insurance cover for each passenger. In the interest for safety, driver's license and vehicle permit must be displayed inside the vehicle and the app must display a clear, high-resolution photo of the driver, the policy document states. Further to reduce congestion, lower pollution, and improve affordable last-mile connectivity, the centre has allowed the use of private motorbikes as cabs. This incidentally comes after the Karnataka high court earlier in June had banned the use of bike taxis. The policy also proposes the delisting of vehicles older than eight years from these platforms.
Mint
12 hours ago
- Mint
Ola, Uber New Rules: From 2x surge pricing to 10% cancellation charges — 5 things passengers and drivers must know
The Centre has notified a new set of rules under the 'Motor Vehicles Aggregator Guidelines 2025' for cab aggregators like Ola, Uber, Rapido and others, which may change the way you ride cabs. The Ministry of Road Transport and Highways in its guidelines has advised states to adopt the revised guidelines within three months. Here are 5 key points from the new 'Motor Vehicles Aggregator Guidelines 2025' that may affect passengers and drivers. Your daily commute to office or journeys during peak hours are set to cost extra as the government has permitted Ola, Uber, Rapido and other cab aggregators to charge 2x surge prices during these periods. The Centre said that 'the aggregator shall be permitted to charge a minimum of 50 per cent lower than the base fare and a maximum dynamic pricing of two times the base fare specified under sub-clause (17.1),' it said. Amid a surge of complaints from customers over Ola, Uber and Rapido drivers cancelling rides repeatedly, the government has recommended that a 10 per cent fee not exceeding ₹ 100 should be paid by the driver in case they choose to cancel without valid reasons. 'In case of cancellations, a penalty of 10 per cent 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,' according to the new rules. To ensure passengers safety, cab aggregators have been asked to ensure installation of the Vehicle Location and Tracking Devices (VLTD) in vehicles and to make sure that Vehicle Location and Tracking Devices are functional all the time. that the driver follows the route indicated in the App. Aggregators have been asked to ensure that drivers follow the route visible on the app through an in-built mechanism. It added that 'in case of any deviation, the App shall signal the control room, which shall then connect with the driver and the passenger immediately.' The latest guidelines for Ola, Uber, Rapido and other aggregators also mandates that drivers recruited by the companies receive at least 80 per cent of the fare. 'The driver onboarded along-with the motor vehicle with the aggregator shall receive at least 80% of the fare applicable including all cost under driver's fare and the remaining charges may be retained as the Apportioned Fare by the aggregator,' the memo said. The payment can be settled daily, weekly or fortnightly but not later as per the agreement between the driver and the aggregator, it said. Aggregators have been mandated to ensure that drivers have health and term insurance of at least ₹ 5 lakh and ₹ 10 lakh respectively. Companies like Ola, Uber and Rapido have been asked to — 'Ensure a health insurance for not less than ₹ 5 Lakh for each driver on-boarded, which shall be increased each year by such percentage each driver as notified by the Central Government.' 5 Lakh for each driver on-boarded, which shall be increased each year by such percentage each driver as notified by the Central Government.' 'Ensure a term insurance for not less than Rs. 10 Lakh for each driver on-boarded, which shall be increased each year by such percentage as notified by the Central Government.'
