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Home»Business»Surge pricing: Govt allows cab aggregators to charge 2X base fare during peak hours | Business News
Business

Surge pricing: Govt allows cab aggregators to charge 2X base fare during peak hours | Business News

July 2, 2025No Comments3 Mins Read
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The federal government has allowed cab aggregators comparable to Uber, Ola and Rapido to cost as much as two instances the bottom fare through the peak hours. Earlier, these aggregators might have charged 1.5 instances of the bottom fare as surge value or dynamic fare throughout peak hours.

Within the revised Motor Automobile Aggregator Tips, 2025 launched on Tuesday, the Ministry of Highway Transport and Highways (MoRTH) mentioned that in non-peak hours, the aggregators can cost a minimal of fifty per cent of the bottom fare.

The fare notified by the state authorities for the respective class or class of motor automobiles, shall be the bottom fare chargeable to passengers availing providers from the aggregator. The states have been suggested to undertake the revised tips inside three months.

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“The bottom fare chargeable shall be for no less than 3 km to compensate for useless mileage together with the space travelled with out a passenger and the space travelled and gasoline utilised for selecting up the passenger,” in keeping with the brand new tips.

No passenger will be charged for useless mileage besides when the space for availing the trip is lower than 3 kilometres and the fare shall be charged solely from the purpose of origin of the journey to the purpose of vacation spot the place the passenger is dropped off, it mentioned.

The driving force onboarded along-with the motorized vehicle with the aggregator shall obtain not less than 80 per cent of the fare relevant together with all price underneath driver’s fare and the remaining prices could also be retained because the apportioned fare by the aggregator. The fee could also be settled each day, weekly or fortnightly however not later as per the settlement between the driving force and the aggregator, it added.

“With respect to motor automobiles owned by the aggregator the on-boarded driver shall obtain not less than 60 per cent of the fare relevant, together with all prices laid out in Driver Fare and the remaining prices shall be retained because the Apportioned Fare,” mentioned the revised guideline.

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On cancellation, it says that if a trip is cancelled by the driving force after accepting the journey, in that case, a penalty of 10 per cent of the fare not exceeding Rs 100, shall be imposed the place such cancellation is made with out a legitimate cause.

Equally, if a passenger cancels the trip with out legitimate cause, a penalty of 10 per cent of the Fare not exceeding Rs 100 will probably be imposed.

The Ministry mentioned that the brand new tips, a revised model of the 2020 tips, are an try to offer a light-touch regulatory system whereas attending to problems with security & safety of the consumer and welfare of the driving force.

dheeraj mishra

Dheeraj Mishra is a Principal correspondent with The Indian Specific, Enterprise Bureau. He covers India’s two key ministries- Ministry of Railways and Ministry of Highway Transport & Highways. He ceaselessly makes use of the Proper to Data (RTI) Act for his tales, which have resulted in lots of impactful studies. … Learn Extra

© The Indian Specific Pvt Ltd



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