Government greenlights peak-hour surge pricing hike for cab aggregators
Big update for anyone who books cabs—India just changed the rules for ride apps like Uber and Ola.
Now, during peak hours, surge prices can go up to twice the base fare (earlier it was capped at 1.5X). Off-peak rides can't be cheaper than half the base fare.
States have three months to roll this out, aiming to balance fair pricing with healthy competition.
Key changes in the ride-sharing ecosystem
Drivers who cancel after accepting a ride could face a 10% penalty (up to ₹100), which gets split with the app—same goes for passengers who bail last minute.
Apps now need to give drivers better health and term insurance (₹5L and ₹10L). Plus, all cabs must have tracking devices linked to state control centers, and drivers will get regular training—especially if their ratings drop.
The goal: safer rides and fewer hassles for everyone.