Our Bureau
New Delhi
As part of the newly introduced Motor Vehicle Aggregator Guidelines (MVAG), the government is allowing the ride-hailing services to increase their fares to up to twice the base rate in the peak hours. The change to doubling up the prices from the previous limit of 1.5 times is part of the new guidelines introduced by the government this year in 2025.
Ride-hailing services like Ola, Uber, Rapido and more are not only being permitted to double their rates in peak hours but are also told not to go lower than half the base rates in the off-peak hours. The transport ministry has also given them a green light for a penalty of 10% of the fare, up to Rs 100, if a ride gets cancelled without any valid reason.
The ministry gave out a statement addressing the situation, stating, “The fare by the State Government for the respective category or class of motor vehicles, shall be the base fare chargeable to passengers availing services from the aggregator. The base fare chargeable shall be for a minimum of three (3) kilometers to compensate for dead mileage, including the distance travelled without a passenger and the distance travelled and fuel utilized for picking up the passenger(s).”
According to the newly reinstated guidelines the driver can only charge the passenger from where he picks them up till where he drops the passenger off. They have also stated that the aggregators will also be told to ensure that there is a minimum insurance of Rs 5 lakh for the passengers in case of any mishaps.
The Central Government has advised the states that they should adopt the newly revised Motor Vehicle Aggregator Guidelines within three months of the date of issuance. The government has also allowed states to add provisions if they want to the already revised guidelines provided by the government.
