Ola, Uber, Rapido, InDrive Cab & Bike Rides to Get Costlier as Govt Allows 2X Surge Pricing During Peak Hours

The Ministry of Road Transport and Highways has updated the guidelines for ride-hailing services like Uber, Ola, Rapido, and inDrive. These platforms can now charge up to double the base fare during peak times, an increase from the previous limit of 1.5 times, according to the Times of India report. During non-peak hours, fares must be at least half of the base fare.

Ola, Uber, Rapido, InDrive and Other Ride-Hailing Services to Get Costlier Soon!

State governments have been urged to implement these new guidelines within three months. The ministry aims to ensure affordability for passengers during high-demand periods while preventing excessive discounting by ride-hailing companies. States will determine the base fare for various vehicles, including taxis, auto-rickshaws and bike taxis.

Base Fare and Ride Cancellations

If a state has not set a base fare, aggregators must declare it to the state government. For example, taxi base fares are approximately Rs 20-21 per km in Delhi and Mumbai and Rs 18 in Pune. The ministry has also introduced penalties for ride cancellations without valid reasons after acceptance on the app.

Drivers who cancel rides will face a penalty of 10% of the fare, capped at Rs 100. This penalty is shared between the driver and the aggregator. Passengers cancelling booked rides will incur similar charges.

Insurance Coverage and Dead Mileage

The revised rules mandate insurance coverage for all drivers associated with aggregators. Each driver must receive a health insurance cover of Rs 5 lakh and a term insurance policy worth Rs 10 lakh. Dead mileage charges will not apply unless the pick-up distance is under 3 km in such cases, fares start from departure.

To enhance passenger safety, ride-hailing companies must install vehicle location and tracking devices (VLTDs). These devices should share data with the aggregator's system and connect to state command centres. Aggregators are also required to provide annual refresher training for drivers.

Drivers whose ratings fall below the bottom 5 percentile based on their tenure with an aggregator must attend quarterly refresher courses. Those failing to comply will be prohibited from operating through that platform.