Explained: Why Your Next Ride On Uber, Ola Or Rapido May Cost Twice as Much

India's cab-hailing services platforms such as Uber, Ola, and Rapido have welcomed the new guidelines by the government which allow these firms to charge double the fare.

Motor Vehicle Aggregator Guidelines

The new Motor Vehicle Aggregator Guidelines (MVAG) 2025 were announced by the Ministry of Road Transport and Highways on Tuesday.

These guidelines give clear rules for India's shared mobility sector by allowing states to let private motorcycles be used by aggregator platforms for passenger rides.

“The aggregator shall be permitted to charge a minimum of 50% lower than the base fare and a maximum dynamic pricing of two times the base fare specified," the guidelines noted.

What Does This Do For Bike-Taxi Drivers?

While your bike-taxi ride fares will be high, it is actually a welcome step by the industry because it will bring some much needed clarity about fares to everyone.

Additionally, this move brings relief to bike taxi operators like Uber, Ola and Rapido, who have operated in a legal grey area for a long period of time, especially in Karnataka, which had recently imposed a ban on bike-taxis, leading to increased tensions and widespread protests.

Further, all major industry players have welcomed this move and have acknowledged its potential to create new opportunities to create livelihoods as well as expand affordable mobility.

What Will This Policy Do?

The government, through this move, has not only opened the door to more affordable transportation options for many, but has also  addressed the challenges of traffic congestion.

Additionally, this policy will also act as a catalyst for creating lakhs of flexible livelihood opportunities for riders across urban and rural India, promote shared and low-emission transport in line with India's climate goals and help in formalising the gig economy.

Also Read: Ola, Uber, Rapido New Rules 2025: Rs 100 Cancellation Fee, Fare Caps, Panic Button — Here’s What You Need To Know