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The government has made a big change in how much cab companies like Ola Uber inDrive and Rapido can charge during peak hours. Earlier these companies were only allowed to increase fares up to 1.5 times the base fare during busy times. But now under new rules they can charge up to 2 times the base fare during peak hours. At the same time during less busy hours they cannot lower the fare below 50 per cent of the base fare. This is to make sure drivers still earn a fair amount even when demand is low. States given 3 months to follow the new rules According to the Times of India the central government has asked all states to put these rules into action within three months. The goal is to reduce the burden on passengers during high-demand times while also stopping companies from offering heavy discounts that create unfair competition. In short the government wants to make pricing more balanced for both passengers and drivers. New rules on ride cancellations and fines The government has introduced clear rules for both drivers and passengers when a ride is cancelled: If a driver accepts a ride on the app but later cancels it without a valid reason a penalty of 10 per cent of the fare or Rs. 100 (whichever is lower) will be charged. This fine will be shared between the driver and the company. If a passenger cancels the booking without a valid reason the same penalty (10 per cent of fare or up to Rs. 100) will apply to them too. Insurance now mandatory for drivers All cab companies will now need to make sure their drivers have: At least Rs. 5 lakh health insurance and At least Rs. 10 lakh term life insurance Who will decide the base fares? These new rules will now also cover auto-rickshaws and bike taxis. Each state government will be responsible for deciding the base fare for different vehicle types like taxis autos and bike taxis. For example: In Delhi and Mumbai taxi base fares are around Rs. 20–21 per km In Pune the base fare is about Rs. 18 per km If a state has not fixed a base fare yet then the cab company must set a fare and inform the state government about it. These changes aim to make fares fair and services more reliable for everyone drivers and riders alike. No more charges for empty ride distance Here’s some good news for passengers: you will not have to pay for the distance the driver covers to reach your pickup point. This is called the ‘empty ride’ fare and it’s now been removed. If the driver has to travel less than 3 kilometers to pick you up then a small charge may apply. In all other cases fare will be calculated only from the time the trip starts until it ends at your destination. New safety measures for passengers To make rides safer the government has made some new rules: Every cab must now have a Vehicle Location and Tracking Device (VLTD). This tracking info should be available to both the cab company and the state government’s control center. Driver training made mandatory All companies will have to give their drivers a refresher training course every year. Drivers who fall in the bottom 5 per cent rating group (based on how long they’ve worked with the company) must go through this training every 3 months. If these drivers do not attend the training they will not be allowed to drive on the company’s platform. These steps are meant to improve safety service quality and trust in ride-sharing platforms for everyone.