New Delhi, July 2 — The Ministry of Road Transport and Highways has revised its guidelines for ride-hailing platforms, permitting them to charge up to two times the base fare during peak hours, compared to the earlier cap of 1.5 times. The updated rules, outlined in the Motor Vehicles Aggregator Guidelines 2025, also allow fares to drop up to 50 percent below the base fare during non-peak hours.
“The aggregator shall be permitted to charge a minimum of 50 per cent lower than the base fare and a maximum dynamic pricing of two times the base fare,” the ministry said in the latest guidelines.
The base fare will be determined by the rates notified by state governments for various categories of motor vehicles and will apply for a minimum of three kilometers to offset “dead mileage” — which includes travel without passengers and the fuel spent reaching a pickup location.
The Centre has advised states to adopt these guidelines within three months.
In a bid to curb last-minute trip cancellations, the ministry has mandated penalties of up to ₹100 or 10 percent of the fare, whichever is lower, on both drivers and passengers if cancellations are made without valid reasons accepted by the aggregator.
The guidelines further outline a range of safety, operational, and welfare provisions. Aggregators must ensure that every driver is covered under health insurance of at least ₹5 lakh and term insurance of ₹10 lakh. Additionally, only vehicles registered within the last eight years will be eligible for onboarding.
“An aggregator shall not onboard vehicles which have been registered for more than a period of eight years,” the guidelines state, aiming to keep fleets updated and roadworthy.
For passenger safety, all vehicles must be fitted with Vehicle Location and Tracking Devices (VLTDs) that remain operational at all times. The platforms must also ensure drivers follow app-suggested routes. Any deviation will trigger an alert to a control room, which must then contact both driver and rider immediately.
To support communication and emergency response, aggregators will be required to establish 24×7 customer support centers, including a telephone line and email. Assistance must be offered in English and the official language of the respective state.
The updated rules also mandate a Grievance Officer and enforce a push toward electric vehicles. “The aggregator shall mandatorily adhere to the targets fixed for inclusion of electric vehicles in their fleet,” the ministry stated. These targets will be determined by either the state government or a designated agency responsible for air quality regulation.
Another major structural change is the streamlining of licensing. Aggregators must now apply through a single-window portal to be developed by the Centre. The licence fee will be ₹5 lakh, valid for five years.
The new 2025 norms build upon the Motor Vehicles Aggregator Guidelines 2020, which were introduced under Section 93 of the Motor Vehicles Act, 1988. Since then, India’s shared mobility landscape has rapidly evolved, driven by consumer demand for flexible options like electric bikes, auto-rickshaw rides, and carpooling services.
A ministry official said the new framework strikes a balance between easing regulations and ensuring public interest. “The idea is to keep the framework light-touch while ensuring safety for users and fair treatment of drivers,” the official said.
With these changes, the government aims to shape a more accountable and sustainable ride-hailing ecosystem in India.
