Ola, Uber, Rapido New Rules 2025: Rs 100 Cancellation Charges, Fares Up To 2x During Peak Hours — Here’s What You Need To Know

Ola, Uber, Rapido New Rules 2025: If you have ever booked a cab, auto, or bike using an app like Ola, Uber, or Rapido, big changes are coming that directly affect you. The Government of India has introduced the Motor Vehicle Aggregator Guidelines 2025. These rules aim to make your rides safer, your payments clearer, and your experience smoother.

From clear pricing and driver training to better emergency support, here’s everything you need to know in simple words.

What is an aggregator?

An aggregator is any company or app that connects passengers with drivers. When you book a ride using an app on your phone, you are using an aggregator’s platform. These companies must now get a licence from the State Government and follow specific rules to keep you safe and ensure fair practices for drivers.

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How do these rules protect your safety?

Your safety is at the heart of these guidelines. All vehicles must have GPS tracking and a panic button linked to a control room that works 24 hours a day. If you press the panic button, the control room will get an alert and contact you immediately.

The app must also let you share your live location with your family or friends while you are travelling.

If the driver takes a different route than shown in the app, the system will inform the control room right away. The vehicle must carry a first aid kit and a fire extinguisher, except in the case of bikes.

Aggregators must regularly check vehicles to ensure they are fit, safe, and not polluting.

What about the drivers?

Drivers must meet strict requirements. They need a valid driving licence, a medical fitness certificate, and they must pass a psychological assessment. Their police record must be clean, with no serious offences in the last three years.

Drivers will be given training on safe driving, first aid, gender sensitivity, and helping passengers with disabilities. This training will help them handle emergencies and treat passengers with respect.

Importantly, drivers cannot be forced to work for only one aggregator. They are free to drive for multiple platforms if they choose.

Fares Up To 2x During Peak Hours

The government has updated the rules for ride-hailing apps like Uber, Ola, Rapido, and inDrive, allowing them to charge higher fares during busy times. Earlier, these companies could increase fares up to 1.5 times the regular base fare during peak hours. Now, under the new 2025 guidelines, they are allowed to charge up to 2 times the base fare when demand is high, like during rush hours, rain, or festivals.

This means if your regular fare is Rs 100, it can go up to Rs 200 during peak times, but not more than that.

What protections are there for drivers?

Drivers must get health insurance worth at least Rs 5 lakh and term insurance of Rs 10 lakh, which will increase every year as per government updates. These insurances are meant to protect drivers and their families if anything goes wrong.

How is fare regulated?

Fares will be regulated by the state government. The government will set a base fare. Aggregators can reduce prices by up to 50% below the base fare or increase them in high-demand times, but never more than double the base fare.

The app must show you exactly how much of the fare goes to the driver and how much is kept by the company. You will never be charged extra for the distance the driver travels to pick you up if your trip is longer than 3 km. You pay only for your ride from pickup to drop point.

What happens if you or the driver cancel a ride?

If you cancel a ride without a valid reason, you can be charged a fee of up to 10% of the fare, but never more than Rs 100. The same penalty applies to drivers who cancel without a valid reason. Apps must clearly list what counts as a valid reason, such as emergencies or wrong pickup addresses.

What about better access and clean rides?

The rules encourage more electric vehicles and vehicles accessible to persons with disabilities. The government can set yearly targets for aggregators to increase electric and Divyangjan-friendly vehicles.

Apps must also be designed to be easy to use for everyone, including people with disabilities.

What help can you expect if something goes wrong?

If you need help, you can contact the aggregator’s call centre, which must be available 24×7 in English and your state’s official language. Before your ride, you will see your driver’s verified photo, name, and contact information on the app.

The app and website must display the company’s address, helpline numbers, fare details, and all important policies, so you always know where to reach out.

What happens to aggregators that break the rules?

If an aggregator does not follow these guidelines, the state government can suspend their licence for up to 3 months. During suspension, the company must stop operating. For serious or repeated violations, the licence can be cancelled permanently, and the company can be fined up to Rs 1 crore.