In a significant move, the Central Government has granted permission to app-based taxi aggregators like Ola, Uber, and Rapido to charge up to double the base fare during peak hours. Until now, these companies were allowed to charge up to 1.5 times the base fare.
The Ministry of Road Transport and Highways has issued revised guidelines regarding fare regulations. According to the notification, the base fare will be the one fixed by the respective state governments for the particular category of vehicles. Aggregators can now charge up to twice that fare during periods of high demand.
Additionally, service providers will be allowed to charge up to 50% less than the base fare and up to double the base fare as per sub-clause (17.1) of the guidelines.
To compensate for “dead mileage”—the distance travelled without a passenger—aggregators can charge a minimum fare equivalent to three kilometers of base fare. This includes the distance covered to reach the passenger and the fuel consumed during that travel.
The revised guidelines also mandate that state governments must implement these changes within three months.
Key Highlights of the New Guidelines:
If a driver cancels a ride without a valid reason, a penalty of 10% of the fare will be imposed on them.
Similarly, if a passenger cancels a ride without valid reason, they too will be fined 10% of the fare.
All drivers must have a minimum health insurance of Rs. 5 lakh and a term insurance of Rs. 10 lakh.
These changes aim to bring transparency and fairness to app-based cab services and standardize operations across the country.
