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Surge Pricing: Govt Allows Cab Aggregators to Charge 2X Base Fare During Peak Hours

  • The Ministry of Road Transport and Highways has allowed cab aggregators like Ola and Uber to charge up to twice the base fare during peak hours, an increase from the previous limit of 1.5 times.
  • A 10% penalty, capped at Rs 100, will apply to both drivers and passengers for cancellations without valid reasons, according to the new guidelines.
  • State governments are required to adopt the revised Motor Vehicle Aggregator Guidelines within three months and can introduce additional provisions as needed.
  • The updated guidelines aim to enhance passenger safety and improve transparency, which include mandates for insurance coverage of Rs 5 lakh for passengers and installation of tracking systems for safety.
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MediaNama broke the news in on Wednesday, July 2, 2025.
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