The Congress on Wednesday criticised the central government over its decision to allow cab aggregators to charge up to two times the base fare during peak hours, as against 1.5 times earlier.
“These companies (cab aggregators) will now charge you double fare during peak hours, a move approved by the Modi government itself. And that’s not all, if you cancel a cab, you’ll still have to pay 10% of the fare. The BJP’s vasooli (extortion) team is leaving no opportunity to pick your pocket," the Congress said in a video posted on its X handle.
The Ministry of Road Transport and Highways on Tuesday issued the Motor Vehicle Aggregator Guidelines (MVAG) 2025.
What the new guidelines say
In the fresh guidelines, the ministry said: "The aggregator shall be permitted to charge a minimum of 50 per cent lower than the base fare and a maximum dynamic pricing of two times the base fare specified under sub-clause (17.1)."
Moreover, the base fare chargeable shall be for a minimum of three kilometres to compensate for "dead mileage" -- including the distance travelled without a passenger and the distance travelled and fuel utilised for picking up the passenger(s), according to PTI.
{{/usCountry}}Moreover, the base fare chargeable shall be for a minimum of three kilometres to compensate for "dead mileage" -- including the distance travelled without a passenger and the distance travelled and fuel utilised for picking up the passenger(s), according to PTI.
{{/usCountry}}According to the guidelines, the fare announced by the state government for each category or class of motor vehicles will serve as the base fare for passengers.
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In case of cancellations, the driver will be penalised 10 per cent of the fare, not exceeding ₹100, if the cancellation is made without a reason identified as valid by the aggregator. A similar penalty will be imposed on the passenger when such cancellation is made without a valid reason, reported PTI.
The government has also directed aggregators to ensure that drivers have health and term insurance of at least ₹5 lakh and ₹10 lakh, respectively.
"An aggregator shall not onboard vehicles which have been registered for more than a period of eight years from the date of initial registration of the vehicle and shall ensure that all vehicles onboarded by it should not have exceeded eight years since the date of initial registration of the vehicle," the guidelines.
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Notably, the government has permitted states to allow the use of non-transport (private) motorcycles for passenger rides through aggregator platforms. All states have been advised to adopt the revised guidelines within three months.
Uber, Rapido welcome new policy
Ride-hailing service Uber praised the new guidelines as a "forward-looking step toward fostering innovation and regulatory clarity."
"Timely adoption by states will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders. We commend the Ministry for its consultative and balanced approach, and remain committed to working closely with governments at all levels to support effective and inclusive rollout of the framework," an Uber spokesperson said, according to PTI.
Rapido specifically welcomed the operationalisation of Clause 23 of the MVAG 2025. This clause permits the aggregation of non-transport motorcycles for passenger journeys, a move Rapido described as a "milestone in India's journey towards a Viksit Bharat".
"By recognising non-transport motorcycles as a means of shared mobility, the Government has opened the door to more affordable transportation options for millions, especially in underserved and hyperlocal areas...the move will also help address pressing challenges such as traffic congestion and vehicular pollution, while expanding the reach of last-mile connectivity and hyperlocal delivery services," Rapido said in a statement.
(Inputs from PTI)