The government has introduced new taxi rules in India, allowing Cab services like Ola, Uber in Drive, and Rapido to charge up to twice the base for during peak hours. The Ministry of Road, Transport and Highway (MoRTH) issued these updated guidelines on Tuesday as part of the Motor Vehicle Aggregator Guidelines, 2025.
Previously, the fare cap was 1.5 times. During non-peak hours, they can change as low as 50% of the base fare. States have been advised to adopt these changes within three months. This move aims to balance writer costs during peak times while ensuring fair earnings for drivers.
Ola, Uber Taxi fare rules: Pricing and Penalty guidelines
Under the new rules, cab Aggregators must follow a pricing range between 50% and 200% of the base fare. If a state has not fixed base fares for taxis, autos, or bike aggregators must inform the state of their fare structure. The guidelines also introduced penalties for ride cancellations. If a driver cancels a confirmed ride without a valid reason, a penalty of 10% of the fare up to Rs 100 will be charged. The same rule applies to passengers who cancel rides without a valid reason.
Driver Earnings and Insurance Improved
Drivers will now receive at least 80% of the fare if they own the vehicle, and 60% if the vehicle is owned by the aggregators. Payments must be settled within two weeks. Aggregators must also provide Rs. 5 lakh health insurance and Rs. 10 lakh term insurance for all drivers, improving their financial security and welfare.