National: The Union Road Transport Ministry has rolled out new guidelines for cab aggregators, allowing them to charge up to double the base fare during peak hours, a significant jump from the previous 1.5 times cap. This move, outlined in the ‘Motor Vehicles Aggregator Guidelines 2025’, also mandates a minimum fare of 50 per cent of the base fare for non-peak hour rides, ensuring better compensation for drivers.
Under the new directives, the base fare will now cover a minimum of three kilometres, a measure aimed at offsetting “dead mileage” – the distance a cab travels without a passenger or to pick one up. This base fare itself will be determined by the state government for each specific category of vehicle. States have been given a three-month window to implement these revised guidelines.
The updated rules also introduce a penalty system for cancellations. Both drivers and passengers face a penalty of 10 per cent of the fare, capped at Rs 100, if a cancellation is made without a valid reason as defined by the aggregator.
In a bid to streamline the licensing process, the Central government will establish a dedicated portal for single-window clearance of aggregator licence applications. The licence fee has been set at Rs 5 lakhs, with a validity period of five years.
Furthermore, aggregators are now required to ensure their drivers have comprehensive insurance coverage: health insurance of at least Rs 5 lakh and term insurance of Rs 10 lakh. The guidelines also necessitate the appointment of a Grievance Officer by every aggregator to address passenger and driver concerns. A significant change for vehicle fleets is the new age restriction; aggregators are prohibited from onboarding vehicles older than eight years from their initial registration date, ensuring a newer fleet on the roads.
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