Ola, Uber, Rapido Can Charge Double During Peak Hours; Bike Taxis Legalised

India’s ride-hailing sector gets a regulatory overhaul with fresh 2025 guidelines allowing platforms like Ola, Uber, and Rapido to charge up to 2x fare during peak periods and legalising bike taxis using private motorcycles, aiming to streamline urban mobility and affordability.

Key Fare Policy Changes for Ride-Hailing Aggregators

The Ministry of Road Transport and Highways has issued the Motor Vehicle Aggregator Guidelines 2025, bringing notable fare policy updates. Ride-hailing companies can now charge up to 2x the base fare during peak hours, up from the earlier 1.5x cap. 

During non-peak hours, fares can drop to as low as 50% of the base fare, offering users more flexible pricing based on demand. The base fare, determined by state governments, factors in a minimum of 3 kilometres of travel and avoids charges for dead mileage unless the ride distance is under 3 kilometres. Fare meters start at the passenger pickup location and end at the drop-off point only.

Bike Taxis Get Legal Approval Using Private Motorcycles

A major highlight of the new norms is the legalisation of private motorcycles for bike taxi services, subject to state government approval. This change brings ride-sharing companies like Rapido and Uber Bike into a clearer regulatory framework, especially crucial after legal hurdles in cities like Bengaluru. It broadens affordable last-mile connectivity choices for commuters in both urban and semi-urban locations.

Read More: Advance Tipping Persists on Ola, Uber, Rapido, and Namma Yatri Despite CCPA Notice! 

Driver and Passenger Benefits Introduced

Under the guidelines, drivers operating with their own vehicles will receive a minimum of 80% of each fare, while those using fleet-owned vehicles will get a minimum of 60%. Additionally, aggregators are required to offer health insurance cover of ₹5 lakh and term insurance of ₹10 lakh to all their drivers. 

Passengers gain safety assurance, as vehicles must now install tracking devices connected to both the aggregators and state command centres. A compulsory ₹5 lakh passenger insurance also becomes standard across platforms.

Focus on Accountability, Training, and Cancellation Policies

Drivers and passengers who cancel rides without valid grounds will face penalties of 10% fare, capped at ₹100. Cancellation fees, once collected, are split between the aggregator and the driver according to the fare-sharing model. 

Aggregators must now also conduct annual refresher training for all drivers, and those in the bottom 5% of user ratings will need to complete quarterly training to remain active on platforms. Persistent failure to comply will result in the driver's removal from the platform, ensuring ride quality and skill maintenance.

Conclusion

The 2025 Motor Vehicle Aggregator Guidelines introduce major reforms in India’s ride-hailing landscape, striking a balance between fare regulation and service flexibility. With provisions for dynamic pricing, legal recognition of bike taxis, improved safety standards, and mandatory driver benefits, these changes are set to reshape urban mobility for both consumers and service providers.

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