Government allows cab aggregators to charge up to 2 times of base fare during peak-hours.

On Tuesday, The Indian government had allowed uses of non-transport (private) motorcycles for passenger journeys through aggregators, subject to state government approval, providing long-awaited regulatory clarity for India’s shared mobility sector. The very next day i.e., on Wednesday, the road transport ministry has allowed cab aggregators such as Uber, Ola and Rapido 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 has to be a minimum of 50% of the base fare.

The Ministry of Road Transport and Highways in its ‘Motor Vehicles Aggregator Guidelines 2025’ said “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)”.

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 passenger(s).

Team Maverick