New rules for Ola and Uber are here—and they’re shaking up your daily rides. The Centre has just rolled out MVAG 2025 (Motor Vehicle Aggregator Guidelines) and it changes how cab fares and cancellations work across India.
Let’s break it down simply.
What’s New in MVAG 2025?
The Ministry of Road Transport and Highways announced the MVAG 2025 guidelines on Tuesday. These rules apply to all cab aggregators—like Ola, Uber, and others.
States have 3 months to adopt these new guidelines. They can also add more rules if they want.
Double Fare in Peak Hours
The big change?
Now, Ola and Uber can charge up to 2x the base fare during peak hours. Earlier, the limit was 1.5 times. This means your evening rides may cost more—especially in high-demand times.
During non-peak hours, they can charge as low as 50% of the base fare—so you might save money when traffic is low.
What’s the Base Fare?
The base fare will be fixed by each state government. It will cover the first 3 kilometers of your ride. This includes the time and fuel it takes for the driver to pick you up—what the industry calls dead mileage.
But don’t worry. You won’t be charged for dead mileage unless your pickup is less than 3 km away.
Cancellation Charges for Both Sides
Got into a last-minute plan change? Or did the driver just cancel on you?
Now, both riders and drivers will be fined if they cancel without a valid reason.
The rule says:
“10% of the fare, up to ₹100, will be charged for ride cancellations without a proper reason.”
So next time, think twice before cancelling casually.
Passenger Insurance Upgraded
Another solid update—every aggregator must now insure passengers for at least ₹5 lakh. That’s a great step for safety and shows the government is thinking ahead.
Only Pay From Start to End
Your fare will now start only from your pickup point to your drop point. No more hidden charges for the cab’s journey to reach you—unless it’s a very short trip (less than 3 km).
What Happens Next?
Each state will implement these rules in the next few months. Some may add more safety or fare tweaks depending on local needs.
Why It Matters
These new rules bring more clarity, fairness, and protection for both riders and drivers. It’s a big move towards making app-based cabs more accountable and transparent.
The government seems serious about regulating this space, and rightly so—millions of Indians now rely on Ola and Uber for daily travel.
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