Rapido, Uber, Ola: Big Shock for Users as Govt Clears Surge Pricing During Peak Hours
In a significant move, the Central Government of India has revised the guidelines for app-based ride-hailing platforms such as Ola, Uber, and Rapido.
New Delhi: In a significant move, the Central Government of India has revised the guidelines for app-based ride-hailing platforms such as Ola, Uber, and Rapido. The Ministry of Road Transport and Highways has officially permitted these aggregators to implement surge pricing during peak hours and relax base fare conditions during off-peak times.
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Under the new rules, operators can increase fares up to 200% during high-demand periods and are allowed to reduce base fares by 50% when demand is low. However, the government has imposed a key restriction: no extra charges are allowed for rides within 3 kilometers.
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Penalties for Ride Cancellations by Drivers and Customers
To curb cancellations, the new guidelines introduce a penalty system. If a driver cancels a ride without a valid reason, a fine of 10% of the fare (not exceeding ₹100) will be levied. This penalty will be shared equally by the driver and the aggregator platform.
Similarly, customers who cancel rides without a proper reason will also face the same penalty, ensuring accountability on both ends.
States Given 3 Months to Implement Rules
All Indian states have been asked to enforce these revised guidelines within 3 months. This move aims to standardize pricing, reduce exploitation, and improve ride transparency across the country.
Mandatory GPS Devices and Real-Time Tracking
To enhance passenger safety, the government has made it mandatory for all vehicles operating under cab aggregators to install vehicle location tracking systems. These devices must transmit real-time data to both the aggregator companies and Integrated Command and Control Centres to facilitate quick emergency response when required.
Green Signal to Private Bikes for Ride-Sharing
In a major boost for the gig economy, the Centre has allowed the use of private bikes for commercial ride-sharing services like Rapido, Ola, and Uber. This comes in the wake of Karnataka High Court’s ban on bike taxis due to the lack of legal provisions in the Motor Vehicles Act.
The central government’s latest decision is expected to overturn such bans in Karnataka and other states, offering relief to gig workers who faced job uncertainty.
Industry Reaction: Mixed But Hopeful
While bike taxi operators have welcomed the decision, there is concern among customers that taxi companies may exploit surge pricing to increase fares significantly. The Ministry, however, maintains that the new policy balances consumer protection, driver rights, and business flexibility.
