Lok Sabha Question No. 3020 (UNSTARRED), answered on 2025-08-07
Subject: Motor Vehicle Aggregator Guidelines, 2025
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Smt. Rachna Banerjee, Mr Pathan Yusuf

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA UNSTARRED QUESTION NO. 3020

ANSWERED ON 7 TH  AUGUST, 2025

## MOTOR VEHICLE AGGREGATOR GUIDELINES, 2025

3020. SMT. RACHNA BANERJEE:

MR. PATHAN YUSUF:

Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

- (a)  whether  the  Government  has  clarified  the  rationale  behind allowing cab aggregators to charge up to twice the base fare during peak  hours  under  the  Motor  Vehicle  Aggregator  Guidelines,  2025 and if so, the details thereof;
- (b) the manner in which the Government plans to protect consumer interests from possible exploitation;
- (c) whether the State Government would be allowed to override or modify the central guidelines of 2X surge in pricing based on local conditions and public interest, if so, the details thereof;
- (d)  the  manner  in  which  the  Government  plans  to  ensure  that  at least 80 percent of the fare reaches the drivers under the revised guidelines and the mechanism in place to audit and monitor this;
- (e)  the  measures  being  taken  to  ensure  transparency  and  prevent arbitrary  fare  hikes  by  cab  aggregators  like  Ola,  Uber  and  Rapido during peak hours; and

(f) whether the Government has conducted any impact assessment of  this  surge  in  pricing  that  affect  daily  commuters,  especially  in metro cities where public transport options are limited and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS (SHRI NITIN JAIRAM GADKARI)

(a) to (f) The Government of India issued Motor Vehicles Aggregators Guidelines, 2025  for providing a light-touch regulatory system while attending to issues of safety and security of the user and the welfare of the driver.

Amongst  numerous  safeguards  for the passengers, the Guidelines provide for fare regulation under Clause 17. Understanding  that  the  fare  is  determined  by  market  forces  of demand  and  supply  of  the  aggregated  vehicles,  the  Guidelines envisage  dynamic  pricing,  allowing  aggregators  to  charge  50% lower than the State notified base fares and capping the maximum surge  pricing  at  twice  the  base  fare  for  peak  hours.  In  order  to ensure transparency, accountability and passenger welfare, the fare notified by the State shall be the base fare.

The drivers' owned motor vehicle shall receive at least 80% of the fare and on the other hand for motor vehicles which are owned by the aggregator, the on-boarded driver shall receive at least 60% of  the  fare.  Therefore, in case of surge pricing,the beneficiary will be the driver of the owned vehicle. This will spur supply and thereby enable better availability during periods of high demand.

The Guidelines provide for suspension and cancellation of Aggregator license on several grounds of violation including unjustified fare/ dynamic fare charged to the passengers. The  Guidelines  ensure that  no  passenger is charged for dead mileage, except when the distance for availing the ride is less than three (3) kilometres, and the fare is charged only from the point of origin to the destination.

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