Govt caps surge pricing by cab aggregators like Ola, Uber at 1.5 times base fare, issues other guidelines

The government on Friday capped surge pricing charged by cab aggregators like Ola and Uber at 1.5 times the base fare.

The development assumes significance in the backdrop of a long-pending demand of citizens to cap the pricing of ride-hailing services.

“The aggregator shall be permitted to charge a fare 50 per cent lower than the base fare and a maximum surge pricing of 1.5 times the base fare,” said the Motor Vehicle Aggregators Guidelines, 2020 issued by the Ministry of Road Transport and Highways.

This will enable and promote asset utilisation which has been the fundamental concept of transport aggregation and also substantiate the dynamic pricing principle which is pertinent in ensuring asset utilisation in accordance with the market forces of demand and supply, the ministry said.