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- Government Allows Uber, Ola, Rapido to Charge Up to 2x Base Fare during Peak Hours
New Delhi5 days ago
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In the new rules, the driver canceled after accepting the ride, then he will be fined 10% of the fare.
Ola, Uber, Rapido can now charge rent up to double in peak hours. The central government has issued guidelines to approve the app based taxi services to do so. The government has asked to implement new rules in 3 months (till September).
7 Know the new rules to increase fare in question and answer…
Question 1: What new rule has the government made for cab companies?
answer: The central government has released the Motor Vehicle Agricultural Guidelines (MVAG) 2025 on Tuesday. Under this, cab companies like Ola, Uber, Rapido and Indrive have been allowed to collect base fare (2X) in peak hours. Earlier this limit was 1.5 times.
Example: Suppose, the base fare of a cab in Bhopal is Rs 100 per 5 kilometers. Under the new rules, the company can charge up to Rs 200 in peak hours.
Question 2: What are peak hours?
answer: Peak hours are the time when there is more traffic on the roads, then the demand of the cab increases or due to bad weather, people book more cabs. It is usually the time between 8-11 am and 5-9 pm. Peak hours can also occur during rain, festivals or large events.
Example: Jaipur is receiving heavy rains during the monsoon. In office time, when people want to go home or office, demand increases. There is a base fare of Rs 20 per kilometer, during the rain, you will have to pay up to 200 rupees (2x) instead of 100 km in peak hours. Earlier it was a maximum of 150 rupees (1.5X).
Question 3: Will the fare in non-peak hours will also be affected?
answer: Yes, according to the new rules, the rent will be at least 50% of the fare base fare in non-peak hours (when demand is low). For example, in the afternoon or late night, the minimum fare will be 50% of the base fare. This means that companies cannot charge less than base fare, even if the ride is very small. This rule is designed to ensure the income of drivers.
Example: The base fare of a bike taxi in Lucknow is Rs 100 for 2 km. In non -peak hours, like 2 pm, if you take a 2 km ride, you will have to pay at least 50 rupees. The company used to charge first and low rupees for this.
Question 4: What is base fare and who decides it?
answer: The base fare is the original rent that is covered for a certain distance or time for a cab, auto-rickshaw or bike taxi. The state governments decide these fare, as the transport rules come under the jurisdiction of the states. The base fare depends on the city, the type of vehicle (eg sedan, SUV, auto, or bike) and local conditions.
Earlier, Ola, Uber has been in controversies over collecting different base fairs in iPhone and Android.
Question 5: What will happen if the driver cancels the ride ride?
answer: If the driver canceles the ride without a proper reason, it will be fined 10% of the base fare, which can be up to a maximum of Rs 100. This rule is designed to prevent drivers from arbitrary cancellation.
Example: Suppose you booked a cab in Indore, whose base fare is 200 rupees. If the driver cancels the ride before starting the ride, it will be fined 20 rupees (10%of 200). Even if the base fare is Rs 1500, the fine will be a maximum of 100 rupees.
Question 6: How long will these rules come into force?
answer: The central government has advised all the states to implement these new rules by the next three months, ie September 2025.
Question 7: Are any other changes made?
answer: Yes, up to 5 lakh insurance cover has been made mandatory for all drivers under the new rules, so that their safety is ensured.
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