By Gaurav Krishna
New Delhi, July 02: The Union Ministry of Road Transport and Highways has announced a comprehensive overhaul of cab and bike aggregator operations in India through the Motor Vehicle Aggregator Guidelines 2025. These new rules apply to companies like Ola, Uber, and Rapido, and are aimed at improving transparency in pricing, enhancing passenger safety, protecting driver rights, and introducing accountability measures for both riders and service providers. One of the most significant changes is that the government has allowed the use of private motorcycles for passenger rides, subject to approval by individual state governments. This move provides long-awaited regulatory clarity to India’s fast-evolving shared mobility sector. The rules also allow surge pricing up to twice the base fare, while cancellation penalties of up to 10% of fare (capped at Rs 100) can now be levied on both riders and drivers. Ola, Uber India and Rapido Still Show ‘Advance Tipping’ Option Despite Government Notice; Users Raise Concerns, Calling It Misleading and Unfair Practice. Surge Pricing and Fare Regulation Aggregators can now charge up to 2x the base fare during peak hours, compared to the earlier 1.5x cap. During off-peak hours, pricing cannot go below 50% of the base fare. The fare itself will be regulated by the respective State Governments, with a minimum chargeable distance of 3 km to cover dead mileage. Apps must display a fare breakdown, showing how much goes to the driver and what portion is retained by the aggregator. Fine for Cancelling Ride, Cap on Fare Hike During Peak Hours, Carpooling Guidelines: Key Highlights of Maharashtra Aggregator Policy for Ola, Uber-Like Cab Services. Ride Cancellations and Penalties If either the driver or passenger cancels a ride without a valid reason, a fee of 10% of the total fare (capped at Rs 100) may be charged. Valid reasons must be clearly listed in the app. Driver Rights and Training Drivers will receive mandatory training on safe driving, first aid, gender sensitivity, and handling passengers with disabilities. They are free to work with multiple aggregator platforms and must undergo police verification, medical checks, and psychological assessments. Insurance and Welfare Drivers must be covered under INR 5 lakh health insurance and INR 10 lakh term insurance, with annual updates. Passengers, too, will be insured for a minimum of INR 5 lakh during travel. Safety, Support and Accessibility Vehicles must have GPS tracking, panic buttons, and first aid kits (except bikes). Apps must allow live location sharing, and 24×7 customer support must be available in English and regional languages. The rules also push for more EVs and accessible vehicles for persons with disabilities. Penalties for Violations Aggregators found violating these rules face licence suspension for up to 3 months, permanent cancellation for repeated offenses, and fines up to INR 1 crore. States have three months to adopt the new guidelines. The Motor Vehicle Aggregator Guidelines 2025 aim to balance passenger safety, pricing transparency, and driver welfare. With stricter rules, insurance coverage, and real-time monitoring, the government hopes to build a more secure, fair, and accessible ride-hailing ecosystem across India.