Government limits ‘surge fare’ asked by cab aggregators Ola, Uber

On November 27, the government posted a barricade on the surge price of cabs. The aggregators like Ola and Uber in peak time demanded 1.5 times of the base fare. Not only this, it now restricts the discount offers of 50 percent on the base fare to limit fare tension.

In states where taxi fare is not regulated by the government, Rs 25/30 will be the base fare for regulation. The rest of the state will follow this rule and it will be levied on cab and companies. However, base fare varies from state to state.


On 27 November, the government laid out this rule in the 26-page Motor Vehicle Aggregator Guidelines issued by the government. It will seek to define and regulate cab aggregators in the country.

For drivers, the government has made it mandatory that they should get 80 percent of the income earned from a ride. While 20% will go to the aggregator’s account.

Moreover, the firms now need to issue health insurance worth Rs 5 lakhs and term insurance of Rs 10 lakh to the driver. This amount will go up by 5 percent each year.

No driver can log out of the system before completing their duty of 12 hours and a 10-hour break is a must after clocking 12 hours.