The central government has issued new guidelines permitting cab aggregators to increase fares by up to two times the standard rate during peak hours. This decision, aimed at regulating the ride-hailing industry, comes as part of broader efforts to address pricing concerns and improve service availability during high-demand periods.

Under the revised policy, companies like Ola, Uber, and other app-based taxi services can legally implement dynamic pricing that reflects market demand, especially during peak times when the availability of cabs is often limited. The guidelines also outline measures to ensure transparency and passenger safety, including requirements for fare disclosure and grievance redressal systems.

Officials stated that the move seeks to strike a balance between driver earnings and consumer needs, while also discouraging cancellations and improving service reliability. The new framework is expected to provide clearer operating norms for aggregators while safeguarding commuter interests.