Uber, Ola, Rapido can charge 2x of base fare during peak hours; 10% penalty on cancelling rides

The guidelines, which aim to provide a light-touch regulatory framework while ensuring passenger safety and driver welfare, allow aggregators to implement dynamic pricing up to two times the notified base fare.

At the same time, they may also offer fares up to 50% lower than the base fare.

“No passenger shall be charged for dead mileage except when the distance for availing the ride is less than three kilometres… and the fare shall be charged only from the point of origin to the point of destination where the passenger is dropped off,” the guideline said.

The government also issued guidelines on imposing a penalty on arbitrary ride cancellations.

Drivers cancelling a ride without a valid reason will be fined 10% of the fare, not exceeding ₹100.

Passengers cancelling without valid reasons will also be charged a cancellation fee of 10% of the fare, capped at ₹100.

The cancellation charges collected from passengers will be divided between the driver and the aggregator in the same proportion as fare sharing norms specified in the guidelines.

According to the norms, drivers onboarded with their own vehicles must receive at least 80% of the applicable fare, while drivers operating aggregator-owned vehicles are entitled to a minimum of 60%.

In a major relief to bike taxi operators like Rapido and Uber, the guidelines for the first time allow the use of non-transport (private) motorcycles for passenger journeys through aggregators, subject to approval by respective state governments. This is expected to bring regulatory clarity to the sector, which has faced legal hurdles in states like Karnataka.

The ministry said the move is aimed at reducing traffic congestion and vehicular pollution, while providing affordable mobility and livelihood opportunities.