Ola & Uber Fare hikes Set to Skyrocket! New Rules Roll Out

The Centre’s latest updates have sparked a storm in the ride-hailing world! Ola, Uber, and other aggregators are now allowed to charge fares up to twice the base price during peak hours, as opposed to the previous limit of 1.5 times. What’s more, the fare will be 50% lower during non-rush hours. With this major shift, commuters and drivers alike will have to adjust to the new rules announced in the Motor Vehicle Aggregator Guidelines (MVAG) 2025.

Fare Hikes During Peak Hours

For the first time ever, dynamic pricing will allow ride prices to rise up to two times the base fare during high-demand times. This means your evening rush-hour trip could cost significantly more than before. However, during quieter hours, fares will drop, offering some reprieve to passengers. Expect lower prices by up to 50% when traffic is light and demand is low.

New Cancellation Fees: Passengers and Drivers Penalized

But the changes don’t stop there. Both passengers and drivers now face penalties for cancellations without valid reasons. A 10% charge will be imposed on a driver who cancels a ride. Similarly, passengers will face the same penalty for cancelling rides at the last minute without a proper explanation. This move is designed to reduce cancellations, making the system more efficient and fair for everyone.

Clearer Fare Structure and Dead Mileage Rules

Under the updated guidelines, state governments will set the base fare for different vehicle categories. However, the first three kilometers of your ride will be charged for, even if the driver travels without a passenger (dead mileage). Fortunately, no charges will apply for dead mileage if the ride is under three kilometers.

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Passenger Safety: New Insurance Requirements

The government has also taken a step to protect passengers. A minimum insurance of Rs 5 lakh will now be required for each ride. This move is aimed at enhancing passenger safety, ensuring that commuters are covered in case of accidents or emergencies.

States Have Three Months to Implement the Guidelines

States are expected to implement these changes within three months. However, they also have the flexibility to add extra provisions to cater to their specific