New govt norms for cab aggregators a balancing act

FRESH guidelines on ride-hailing services aim to do a fine balancing act by giving more headroom to cab aggregators, ensuring the welfare of drivers and protecting the interests of users. The government has allowed aggregators such as Uber, Ola, inDrive and Rapido to charge up to two times the base fare during peak hours, up from 1.5 times earlier, as surge pricing. Alongside, the revised Motor Vehicle Aggregator Guidelines, 2025, released by the Ministry of Road Transport and Highways, leave the non-peak hour charges at not less than 50 per cent of the base fare. This is to ensure that passengers are not burdened during peak traffic hours, and aggregators do not undercut competition through steep discounts at other times.

A revised version of the 2020 guidelines, the new norms, according to the Centre, are an attempt to provide a light-touch regulatory system while attending to issues of safety and security of the user, and welfare of the driver. Aggregators have to install vehicle location and tracking devices, making sure that the feed is received by them as well as linked to the integrated command and control centres of state governments. A better earning percentage for drivers has been mandated. They must also have health and term insurance of at least Rs 5 lakh and Rs 10 lakh, respectively.

The Centre has opened the door for states to permit bike taxis. It can be a revenue generator and a job creator. State governments will have to notify the base fare for all vehicles, even auto-rickshaws and bike taxis. They have been advised to adopt the new norms within three months. Ride-hailing services have transformed the way India travels, and emerged as a major source of employment. Uniform national guidelines are expected to reduce regional variations.

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