New Delhi: The government of India has revised its rules for cab aggregators like Uber, Ola, and Rapido, allowing them to charge up to twice the base fare during peak hours — an increase from the previous cap of 1.5 times.
The updated Motor Vehicle Aggregator Guidelines, 2025, released on Tuesday by the Ministry of Road Transport and Highways (MoRTH), also stated that during off-peak hours, fares can drop to as low as 50% of the base fare.
The base fare will be the standard rate set by state governments for each category of vehicle. States have been advised to implement these new guidelines within three months.
According to the new rules, the base fare will cover a minimum distance of 3km to account for “dead mileage” — the distance travelled by the driver without a passenger, including while picking up the rider. Passengers will not be charged for this dead mileage unless the total ride is under 3 km. In all cases, fares will apply only from the starting point of the ride to the drop-off location.
Under the revised revenue sharing model
Drivers using their own vehicles will get at least 80% of the fare, with the remaining going to the aggregator. If the vehicle is owned by the aggregator, the driver will receive at least 60% of the fare.
Fare payments can be settled daily, weekly, or fortnightly, depending on the agreement between the driver and the platform.
In case of cancellations
If a driver cancels a confirmed ride without a valid reason, a penalty of 10% of the fare (capped at Rs 100) will be charged. The same rule applies to passengers who cancel without a valid reason.
The Ministry said these new rules — an update to the 2020 guidelines — aim to balance light regulation with safety for passengers and fair earnings for drivers.
