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Government Fixes Surge Pricing Limits and More for Cabs in India

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Ever since the pandemic started, the food, hospitality, and traveling industry are the worst hit of all. This has also affected cab aggregators as more and more people are now indoors instead of their offices. This is why Ola and Uber – the country’s major cab services – tried to stay relevant by introducing new schemes.

However, with the new guidelines issued by the government, the taxi services can draw up to only 20% on ride fares with a cap on surge pricing. This is great news for drivers and bad news for the companies themselves. App-managed cab aggregators can charge only up to 1.5 times the base fare as surge pricing or offer services at 50% of the base fare during off-peak hours. 

This is the first time the Indian Government is bringing regulations on taxi-hailing services in the country. Also, the guidelines state that the cancellation fee cannot exceed more than 10% of the total fare or Rs.100. Female passengers have the option to opt for pooled service with other passengers of the same gender as well.