The government has given more legroom to cab services when it comes to peak-hour price surge. The new guidelines from the Transport Ministry allow the firms to charge up to twice the base fare during rush hours. On the other hand, they also directed that the non-peak hour charges should not be less than 50% of the base fare.

States have been advised to adopt these revised guidelines within three months, that is, by September 2025.

The rationale behind this rule is to ensure that customers are not burdened during periods of surge in traffic. This also comes as a response to competitors undercutting other cab providers by offering steep discounts.

Government guidelines for cab aggregators  

The new guidelines specify that state governments will notify the base fare for different categories of vehicles, including auto-rickshaws and bike taxis, which have been brought under the ambit of the policy.

New cancellation policy

For the cancellation policy, in case a booking by a driver after accepting a journey on the app does occur,  a penalty of 10% of the fare, with a cap of Rs 100, will be imposed. This penalty will be shared by both the driver and the service provider. Similarly, when a passenger cancels a booking on the app, a similar fee process of penalty fee will be collected.

Passenger safety guidelines

The new guidelines state that passengers will not be charged for dead mileage, except when the distance to access the ride is under 3 km. Fares will be calculated strictly from the journey’s starting point to its destination.

To enhance passenger safety, the Centre mandates that all aggregator vehicles be equipped with Vehicle Location and Tracking Devices (VLTDs), with data accessible both to the aggregator and the state government’s integrated command and control centre.

Driver accountability

Aggregators have been mandated to ensure that drivers have health and term insurance of at least Rs 5 lakh and Rs 10 lakh, respectively.

Additionally, aggregators must provide annual refresher training for drivers. Those whose performance ratings fall in the bottom five percent, based on their duration with the aggregator, must undergo quarterly refresher courses. Failure to comply will result in suspension from the platform.

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