Taking cab at rush hour? You'll have to pay double
What's the story
The Ministry of Road Transport and Highways has updated its guidelines for ride-hailing services like Uber and Ola. The new rules allow aggregators to double the base fares during peak hours, a major increase from the earlier cap of 1.5 times. This change allows for more dynamic pricing based on demand fluctuations.
Fare regulation
Non-peak hour fares must be at least 50% of fare
According to the new guidelines, non-peak hour fares should be at least 50% of the base fare. The Ministry of Road Transport and Highways released these updated regulations on Tuesday. The revised rules apply to all ride-hailing platforms, including Uber, Ola, Rapido, and inDrive.
Additional regulations
Guidelines include provisions for 'dead mileage' and penalty for cancellations
The new guidelines also include a provision for "dead mileage," or the distance traveled without a passenger and the distance and fuel used to pick up passengers. The base fare should be chargeable for a minimum of three kilometers, according to these rules. The new rules also impose a penalty of 10% of the fare, not exceeding ₹100, on drivers and passengers who cancel rides without a valid reason.
Insurance mandate
Aggregators must ensure drivers have health, term insurance
The new guidelines also require aggregators to ensure that their drivers have health and term insurance of at least ₹5 lakh and ₹10 lakh, respectively. This requirement addresses driver welfare and vehicle standards. The rules also say that an aggregator should not onboard vehicles registered for more than eight years from the date of initial registration.