News > Uber, Ola hit a speed bump as Indian government caps surge pricing and issues new guidelines

Uber, Ola hit a speed bump as Indian government caps surge pricing and issues new guidelines

Indian ride-hailing aggregator businesses have hit a speed bump with the Indian government’s fresh motor vehicle aggregator guidelines.

The driver should receive 80% of the fare, while 20% will go to the aggregator. The aggregator will be allowed to charge only 50% lower than the base fare.    Surge pricing has been capped at 1.5 times the base fare. Additionally, the state government may by way of a notification direct 2% over and above the fare towards the state exchequer.