Latest news with #MVAG
NDTV
10 hours ago
- Automotive
- 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
15 hours ago
- Automotive
- 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.
New Indian Express
a day ago
- Automotive
- New Indian Express
Bike taxi aggregators pin hope on new guidelines by Centre to resume services
BENGALURU: Will the bike taxi ban be revoked in Karnataka, has become a million dollar question now, especially after the Union government's guidelines permitting aggregation of non-transport motorcycles for passenger journey. Ministry of Road Transport and Highways (MoRTH) on July 1 released its Motor Vehicle Aggregator Guidelines (MVAG) 2025 which permits the aggregation of non-transport (personal) motorcycles for passenger journey. Bike taxi aggregators are pinning their hopes on the recent guidelines, hoping that this will convince the state government to revoke the ban on bike taxis. Bike taxis were banned in the state, as the transport department did not frame a policy, permitting personal vehicles (white board registration vehicles) to be used for commercial purposes (to carry passengers). Transport Minister Ramalinga Reddy declined to comment on the development. An Uber spokesperson welcomed the MVAG 2025, terming it forward-looking step toward fostering innovation and regulatory clarity in India's digital mobility sector. He said that Uber remains committed to working closely with governments at all levels to support effective and inclusive rollout of the framework. 'This move, rooted in the State's powers under Section 67(3) of the Motor Vehicles Act, is a milestone in India's journey toward a Viksit Bharat — a developed, self-reliant, and inclusive India. By recognising non-transport motorcycles as a means of shared mobility, the government has opened the door to more affordable transportation options for millions, especially in underserved and hyperlocal areas,' a Rapido spokesperson said. 'We see this policy shift as a catalyst for creating lakhs of flexible livelihood opportunities for riders across urban and rural India, promoting shared and low-emission transport in line with India's climate commitments and formalising the gig economy with technology-backed platforms and regulatory support,' he said. 'We are committed to supporting the various state governments in operationalising this initiative in line with all stipulated guidelines. We will ensure responsible onboarding of riders, compliance with safety and insurance norms, and timely contributions as part of the proposed authorisation framework, the Rapido spokesperson added.
The Hindu
2 days ago
- Automotive
- The Hindu
Bike taxi ban: Centre allows use of non-transport motorcycles for passenger journeys through aggregators
Bike taxi platforms have received a boost with the Union government notifying the Motor Vehicle Aggregator Guidelines (MVAG), 2025, on July 1. The new rules permit the use of non-transport (private) motorcycles for passenger transport, provided State governments grant their approval. The development has sparked renewed optimism among aggregators and gig workers hoping for a revival of bike taxi services in Karnataka. Clause 23 of the guidelines states that 'state governments may allow the aggregation of non-transport motorcycles for shared mobility.' This clause is being seen as a game-changer by mobility companies, especially in cities like Bengaluru, which have a high demand for last-mile connectivity. According to the guidelines, this move is expected to reduce traffic congestion and vehicular pollution, while offering affordable transport options, supporting hyperlocal deliveries, and creating new livelihood opportunities. The Centre has vested state governments with the power to regulate and authorise such services under Section 67(3) of the Motor Vehicles Act. States can now impose authorisation fees on aggregators, which may be collected on a daily, weekly, or fortnightly basis. Further, the guidelines lay down clear compliance norms for aggregators. 'Aggregators must also ensure that all drivers onboarded under this clause comply with the regulations laid out in the guidelines,' it says. This includes adherence to safety standards, insurance norms, and responsible onboarding practices. Guidelines provide regulatory clarity In its official response to The Hindu, Uber called the release of MVAG 2025 a forward-looking step. A spokesperson for the company said the guidelines provide regulatory clarity and promote innovation in India's digital mobility sector. 'Timely adoption by States will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders. We commend the Ministry for its consultative and balanced approach, and remain committed to working closely with governments at all levels to support effective and inclusive rollout of the framework,' the spokesperson said. Rapido also welcomed the Centre's move, particularly the operationalisation of Clause 23. 'We welcome the Ministry of Road Transport & Highways, decision to operationalise Clause 23 of the new Motor Vehicles Aggregator Guidelines, 2025, which permits the aggregation of non-transport motorcycles for passenger journeys. This move, rooted in the State's powers under Section 67(3) of the Motor Vehicles Act, is a milestone in India's journey toward a Viksit Bharat, a developed, self-reliant, and inclusive India,' a company spokesperson told The Hindu in a statement. The company added that this step aligns with India's goals for sustainable urban development and will help address pressing challenges such as traffic congestion and pollution. It further stated that the move would significantly boost last-mile connectivity and local delivery services. 'We see this policy shift as a catalyst for creating lakhs of flexible livelihood opportunities for riders across urban and rural India, promoting shared and low-emission transport in line with India's climate commitments and formalising the gig economy with technology-backed platforms and regulatory support. We are committed to supporting the various state governments in operationalising this initiative in line with all stipulated guidelines. We will ensure responsible onboarding of riders, compliance with safety and insurance norms, and timely contributions as part of the proposed authorisation framework,' the spokesperson added. Develop a state-level framework: BTA The Bike Taxi Association said that by allowing non-transport motorcycles to be used for shared rides, the Centre has created an opportunity to widen transport access, especially in areas underserved by traditional public transit. 'As one of India's most urbanised and digitally connected states, Karnataka stands to benefit significantly from the operationalisation of Clause 23. Bengaluru, in particular, with its high traffic density and demand for last-mile options, is well-positioned to implement this model effectively. Rural and semi-urban Karnataka can also leverage this framework to address mobility gaps and promote local entrepreneurship,' the association noted. The association urged the Karnataka government to take note of the enabling policy and develop a State-level framework that permits shared mobility on non-transport two-wheelers. However, transport department officials said they are reviewing the guidelines and are not in a position to comment at this time.
&w=3840&q=100)
First Post
2 days ago
- Automotive
- First Post
2X surge pricing: Why Ola, Uber rides will cost more during peak hours
The Centre has released new guidelines for ride-hailing platforms. Cab aggregators such as Uber, Ola and Rapido can now charge twice the base fare during peak hours, up from the previous 1.5 times. The new rules also allow these companies to operate private bikes as taxis read more A motorbike driver uses the Uber mobile application for Uber Moto rides in New Delhi, India, June 14, 2023. File Photo/Reuters Cab rides at rush times are set to get expensive in India. The Centre has revised rules for ride-hailing apps, allowing cab aggregators such as Uber, Ola and Rapido to charge twice the base fare during peak hours. Previously, the cap on the surge price or dynamic fare during peak hours was 1.5 times the base fare. This will change after the new Motor Vehicle Aggregator Guidelines (MVAG), 2025, were issued by the Ministry of Road Transport and Highways (MoRTH) on Tuesday (July 1). STORY CONTINUES BELOW THIS AD Let's take a closer look. What are the new rules for cab services? Cab aggregators can soon charge up to two times the base fare during the peak hours. The Centre has also permitted them to charge a minimum of 50 per cent of the base fare during non-rush hours. The new guidelines also state that if a driver cancels the ride without a valid reason, a penalty of 10 per cent of the fare, not exceeding Rs 100, will be imposed. If a passenger cancels the ride without a valid reason, they will be charged similarly. The ministry said on the regulation of fees, '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.' If a state has not decided on a base fare, the aggregator will have to specify the charge to the state government, as per a Times of India (TOI) report. 'The base fare chargeable shall be for a minimum of three km to compensate for dead mileage including the distance travelled without a passenger and the distance travelled and fuel utilised for picking up the passenger,' according to the new guidelines. The Centre has revised the cap on the surge price charged by cab aggregators. File Photo/Reuters Ride-hailing platforms cannot charge dead mileage to passengers, except when the distance for availing the ride is less than three kilometres. '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,' the government's guidelines say. The Centre has directed the state governments to adopt the revised guidelines within three months. STORY CONTINUES BELOW THIS AD The government has revised the Motor Vehicle Aggregator Guidelines 2020 to bring the regulatory framework up to date with the developments in the motor vehicles aggregator ecosystem. Insurance for drivers & more The revised guidelines also permit the use of non-transport (private) motorcycles as taxis. 'The State Government may allow aggregation of non-transport motorcycles for journey by passengers as shared mobility through aggregators, resulting in reduced traffic congestion and vehicular pollution, along with providing, inter alia, affordable passenger mobility, hyperlocal delivery, and creating livelihood opportunities,' the notification stated. States can levy daily, weekly, or fortnightly fees on aggregators for the use of such motorcycles, as per Clause 23 of the guidelines. The guidelines come as a relief for bike taxi operators, including Rapido, Ola and Uber, who have long operated in a legal grey area. Recently, Karnataka's ban on bike taxis triggered widespread protests. The revised rules also make insurance cover mandatory for drivers associated with cab aggregators. Each driver should be provided with a health insurance cover of Rs 5 lakh and a term insurance policy of Rs 10 lakh. STORY CONTINUES BELOW THIS AD Cab services hail new rules Popular ride-hailing apps, including Uber and Rapido, have welcomed the government's new guidelines. Uber has said the new rules will lead to innovation and regulatory clarity. 'Timely adoption by states will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders. We commend the ministry for its consultative and balanced approach,' a company spokesperson said. A man drives an Uber electric car on a road in New Delhi, India, August 28, 2023. File Photo/Reuters Rapido has specifically lauded Clause 23 of the MVAG 2025, which allows aggregators to operate private motorcycles for passenger journeys. The company has described the move as a 'milestone in India's journey towards a Viksit Bharat'. With inputs from agencies
