Bad news for commuters! Ola, Uber, inDrive, Rapido can now charge double fare during peak hrs, extra amount to be paid if driver has to travel…; Check new guidelines

These new rules will now also cover auto-rickshaws and bike taxis. Each state government will be responsible for deciding the base fare for different vehicle types like taxis, autos, and bike taxis.

The government has made a big change in how much cab companies like Ola, Uber, inDrive, and Rapido can charge during peak hours. Earlier, these companies were only allowed to increase fares up to 1.5 times the base fare during busy times. But now, under new rules, they can charge up to 2 times the base fare during peak hours. At the same time, during less busy hours, they cannot lower the fare below 50 per cent of the base fare. This is to make sure drivers still earn a fair amount, even when demand is low.

States given 3 months to follow the new rules

According to the Times of India, the central government has asked all states to put these rules into action within three months. The goal is to reduce the burden on passengers during high-demand times while also stopping companies from offering heavy discounts that create unfair competition.

In short, the government wants to make pricing more balanced for both passengers and drivers.

New rules on ride cancellations and fines

The government has introduced clear rules for both drivers and passengers when a ride is cancelled:

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If a driver accepts a ride on the app but later cancels it without a valid reason, a penalty of 10 per cent of the fare or Rs. 100 (whichever is lower) will be charged. This fine will be shared between the driver and the company.

If a passenger cancels the booking without a valid reason, the same penalty (10 per cent of fare or up to Rs. 100) will apply to them too.

Insurance now mandatory for drivers

All cab companies will now need to make sure their drivers have:

• At least Rs. 5 lakh health insurance, and
• At least Rs. 10 lakh term life insurance

Who will decide the base fares?

These new rules will now also cover auto-rickshaws and bike taxis. Each state government will be responsible for deciding the base fare for different vehicle types like taxis, autos, and bike taxis.

For example:

• In Delhi and Mumbai, taxi base fares are around Rs. 20–21 per km
• In Pune, the base fare is about Rs. 18 per km

If a state has not fixed a base fare yet, then the cab company must set a fare and inform the state government about it. These changes aim to make fares fair and services more reliable for everyone, drivers and riders alike.