Double fare will have to be paid during peak hours: Government gives concession to cab companies, big decision for bikes too

Cab aggregators will now be able to charge more than the fixed fare during peak traffic hours. The Ministry of Road Transport and Highways has implemented the new Motor Vehicle Aggregator Guidelines (MVAG) 2025 on July 1. According to which, cab aggregators have been allowed to charge up to twice the fixed fare during peak traffic hours. Till now, one and a half times more fare was allowed. The central government has notified all states to implement the new guidelines within the next three months. This increase in taxi-auto fares has been implemented with the aim of providing flexibility to the aggregators platform during peak demand and also to remove the challenges of the overall regulatory framework for pricing and management. MVAG 2025 has also allowed non-transport (private) motorcycles to be used as passenger vehicles, removing a long-standing regulatory gap. Private vehicles can be used for passenger journeys through aggregators. However, it requires the approval of the state government. According to the guidelines, the state government can allow private vehicles to travel as sharing mobility through aggregators. The purpose of giving this permission is to reduce traffic, pollution and improve affordable mobility-hyperlocal delivery. Under the guidelines of Clause 23, states will be empowered to charge daily, weekly or fortnightly fare from aggregators for the use of such motorcycles.

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