Govt allows cab aggregators to charge twice base fare during peak hours

New Delhi: The government has permitted cab aggregators to implement a maximum dynamic pricing rate of up to twice the base fare during peak hours.

According to the Motor Vehicles Aggregator Guidelines 2025 issued yesterday, aggregators are also required to charge at least 50 per cent less than the base fare during non-peak hours.

The Ministry of Road Transport and Highways has directed the state governments to adopt these revised guidelines within three months from the date of issue.

The guidelines further specify that "the fare notified by the state government for the respective category or class of motor vehicles shall be the base fare chargeable to passengers availing services from the aggregator."

Additionally, the base fare should cover a minimum of three kilometers to account for dead mileage — this includes the distance traveled without a passenger and the distance and fuel used to pick up the passenger(s).

As per the revised guidelines, the driver, along with the motor vehicle, onboarded with the aggregator, is entitled to receive a minimum of 80% of the applicable fare, including all costs under the driver's fare. The remaining portion may be retained by the aggregator as the apportioned 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 of the journey to the point of destination where the passenger is dropped off,” the guidelines said.

Moreover, if a driver cancels a booking after accepting a ride on the app, a penalty of 10 percent of the fare, not exceeding Rs 100, will be imposed if the cancellation is made without a valid reason, as defined by the aggregator and clearly mentioned on its website and app.

If a passenger cancels a booking after confirming the journey on App, a cancellation fee of 10 percent of the fare, not exceeding Rs 100, will be collected. This fee applies if the cancellation is made without a valid reason, as outlined by the aggregator on its website and app. The cancellation fee will be divided between the driver and the aggregator.