All You Need to Know About the New Guidelines for Cab Aggregators

The rules cap the surge pricing at 1.5 times the base fare. 

3 min read
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The Motor Vehicles Aggregator Guidelines for companies such as Ola and Uber were released by the Ministry of Roads, Transport and Highways on Friday, 27 November. This is the first move by the government to regulate the aggregator space. These guidelines will establish a regulatory framework for aggregators by state governments, to ensure that aggregators are responsible for their operations.

Here is all you need to know about the new guidelines.


Will the fares for cab services change?

Customers will be charged for a minimum of 3 kilometres, which is the base fare.

Will there be cap on surge pricing?

The rules cap the surge pricing at 1.5 times the base fare, and the aggregator shall be permitted to charge a fare 50 percent lower than the base fare.

Is there a cap on the aggregator commission?

The regulation caps the percentage of fare that an aggregator can receive at 20 percent (commission), with at least 80 percent having to go to the driver.

Any changes in cancellation policies?

Yes, when a booking is cancelled by the driver after accepting, a penalty of 10 percent of the total fare not exceeding Rs 100 will be imposed. However, this will apply only if the cancellation is made without a valid reason that shall be stipulated by the aggregator on its website and on the app. A similar fee is applicable to the customer as well.


What are the new major regulations for drivers?

For a driver to be taken on as a driver partner on Ola, Uber or any such platform, they are required to have a valid proof of identity, hold a valid driving licence, a KYC compliant bank account or a Jan Dhan account.

What are the criteria to become an aggregator driver?

The driver must have a minimum driving experience of two years. If their experience is less than two years, a driver training must be facilitated by the aggregator for 15 days. The driver must not have been convicted in the last three years. They must undergo a medical examination and a police verification.


What are the benefits assured to the drivers?

The aggregators will have to provide drivers with health insurance of not less than Rs 5 lakh per year and increased by 5 percent each year, a term insurance of not less than Rs 10 lakh and a 5 percent increase each year.

Is there a cap on working hours for drivers?

Yes, aggregators have to ensure drivers are not logged in for more than 12 hours and that if extended, a mandatory break of 10 hours will be imposed.

What safety mechanisms should all vehicles have?

All vehicle must have AIS 140 Certified Vehicle Tracking and Monitoring System with panic buttons. The vehicles should also have a fire extinguisher, the child lock mechanism should be disabled, and the vehicle should have enabled manual override for the central locking system.

What are the other safety features needed?

Other safety measures include ensuring that the driver plies on the assigned route as per the app. If they don’t comply with the same, a mechanism is developed where the app device indicates the fault to the driver and the control room of the aggregator is immediately alerted.

The guidelines also state that a mechanism must be enforced on the app to ensure that the identity of the driver undertaking a trip is the same as the one enlisted with the aggregator requiring verification every time a trip is accepted. It also calls for spot checks.

What are the guidelines for car-pooling?

The new rules also allow aggregators to offer pooling service on private cars but with a daily limit of four intra-city rides and two inter-city rides per week. For ride pooling the guidelines also state that female passengers shall also be provided the option to pool only with other female passengers.


(With inputs from The News Minute)

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Topics:  FAQs   cab aggregator   Cab Aggregators 

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