New Delhi, July 2: In a significant revision of pricing norms, the Ministry of Road Transport and Highways has granted cab aggregators like Uber, Ola, and Rapido the authority to charge up to twice the base fare during peak hours, an increase from the earlier cap of 1.5 times.
According to the newly issued Motor Vehicles Aggregator Guidelines 2025, the ministry has outlined that during non-peak hours, fares can be reduced to as low as 50% of the base fare, providing more flexibility for operators and riders alike.
The guidelines also specify that the base fare must apply to a minimum distance of three kilometers, ensuring fair compensation for "dead mileage," which includes distances covered by the vehicle without passengers, especially while heading to pick up riders.
This move aims to balance affordability for consumers during off-peak times while addressing operational costs for aggregators during high-demand periods.
