Thursday, July 03, 2025 ਪੰਜਾਬੀ हिंदी

Business

Ola, Uber, Rapido can now charge up to double the base fare during peak hours

New Delhi, July 2 || The government has permitted cab aggregators like Ola, Uber and Rapido to charge up to twice the base fare during peak hours.

Previously, they were allowed to apply a surge or dynamic pricing of only up to 1.5 times the base fare.

The change was announced in the revised Motor Vehicle Aggregator Guidelines, 2025, released by the Ministry of Road Transport and Highways (MoRTH).

These new rules aim to strike a balance between user safety, driver welfare, and business operations.

As per the new rules, cab companies can now charge a minimum of 50 per cent of the base fare during non-peak hours.

The base fare will be the amount notified by the respective state government for different types or classes of motor vehicles.

States have been advised to adopt the new guidelines within the next three months.

The government has also clarified that the base fare should cover a minimum distance of 3 kilometres.

This is to compensate for the ‘dead mileage’ -- the distance and fuel used by the driver to reach the passenger’s pickup point.

However, passengers will not be charged separately for dead mileage unless the total ride distance is less than 3 km.

 

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