Ola & Uber

Ola and Uber surge pricing and cancellation rules in India

Since July 2025, the central guidelines let cab apps charge between half and twice the state-set base fare, and cap cancellation fees at ₹100. Maharashtra is stricter: surge can't go above 1.5 times the base fare. Here's what each rule means when you book.

General information, not legal advice. Checked on 25 October 2026. Rules change and states adopt them on their own timelines, so your state transport department's latest notification is the final word.

The central rules: Motor Vehicle Aggregator Guidelines 2025

The Ministry of Road Transport and Highways issued revised guidelines for ride apps on 1 July 2025 and advised states to adopt them by 1 October 2025. The main points for riders:

  • The state sets the base fare, covering at least the first 3 km.
  • Fares can move between 50% and 200% of the base fare. At peak times an app can charge up to twice the base fare; when demand is low, as little as half.
  • Cancelling without a valid reason costs 10% of the fare, up to ₹100, whether the driver or the rider cancels. The valid reasons have to be listed in the app.
  • Drivers keep most of the fare: at least 80% when they drive their own vehicle, at least 60% in a vehicle the app owns.
  • Passenger insurance of at least ₹5 lakh per trip.
  • Safety: live location sharing in the app, and a tracking device in the vehicle.

Maharashtra: surge capped at 1.5×

Maharashtra approved its own aggregator policy in 2025, and it's tighter than the central one:

  • fares follow base rates set by the Regional Transport Authority;
  • surge can't go above 1.5 times the base fare, including at festivals, holidays and rush hour;
  • off-peak discounts can't go more than 25% below the base fare;
  • the minimum fare covers the first 3 km;
  • if a driver cancels after accepting, they pay 10% of the fare or ₹100, whichever is lower, credited to the rider;
  • if a rider cancels without a valid reason, they pay 5% of the fare or ₹50, whichever is lower, to the driver;
  • drivers get at least 80% of the fare.

In October 2025 the state published draft Motor Vehicle Aggregator Rules for public comment, keeping the 1.5× cap and limiting convenience fees to 5% of a ride. Check the final notification for what's in force now.

Do iPhones pay more than Android phones?

In January 2025, the Central Consumer Protection Authority sent notices to Ola and Uber after social media posts showed different fares for the same trip on iPhones and Android phones. Both companies denied pricing by phone type, and the matter was sent for detailed investigation. We haven't seen a public outcome yet. Fares also change minute to minute with demand, so two screenshots taken moments apart can differ for that reason alone.

How to pay less at peak time

  • Share the cab. Surge or not, three people splitting one fare pay about a third each. Here's how to split it fairly.
  • Compare apps before you book. The same trip is often priced differently.
  • Leave a little before the rush, or wait it out if you can: surge eases as demand drops.
  • Check the meter fare. For short trips, a metered auto can beat an app at peak time. See meter fares in Maharashtra.

How to complain

  • Start with the help section inside the app: a wrong fare, an unfair cancellation fee, a driver demanding extra.
  • If that doesn't resolve it, the National Consumer Helpline takes complaints on 1915 and at consumerhelpline.gov.in.
  • In an emergency, call 112.

Sources