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Government issued new guidelines for companies like Ola and Uber

The Union road transport and highway ministry has issued fresh guidelines to regulate cab aggregators like Ola and Uber and also set a limit to surge pricing, fulfilling a frequent demand of users of all such mobility aggregators.

The new guidelines are hoped to solve regular issues faced by riders who have been complaining of higher surge pricing and lack of regulation for cab aggregators. In a press release, the ministry said that the main objective of the fresh guidelines is to regulate shared mobility and reduce traffic congestion and pollution along with providing ease of doing business, customer safety and driver welfare.

In case of cancelling a ride, a fee of 10% of the total fare not exceeding Rs 100 has been set for both riders and drivers when a cancellation is made without a valid reason as stipulated by the aggregator on its website and on the app. The ministry has also released a new rule for a ride-sharing model in which a maximum of four ride-sharing intra-city trips in a day and a maximum of 2 ride-sharing inter-city trips per week shall be permitted for a vehicle attached with an aggregator.



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