The Indian government has issued the Motor Vehicle Aggregator Guidelines 2025, allowing cab aggregators such as Ola, Uber, and Rapido to charge surge pricing up to twice the base fare during peak hours, an increase from the previous cap of 1.5 times. The guidelines mandate that off-peak fares cannot fall below 50% of the base fare. Additionally, the Ministry of Road Transport and Highways has permitted the use of personal motorcycles as taxis through aggregators, marking the first time the Centre has urged states to allow shared mobility via non-transport motorcycles, although states retain the authority to make the final decision. The guidelines also introduce penalties for cancellations without valid reasons, imposing fines up to 10% of the fare or ₹100 on both drivers and riders. Furthermore, the rules require that at least 80% of the fare collected be paid to drivers. These changes aim to regulate surge pricing, improve transparency, and formalize bike taxi operations, though some states like Karnataka have banned bike taxis. The revised guidelines have been welcomed by ride-hailing companies but have drawn criticism from consumer advocates and opposition parties concerned about increased costs for commuters.
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