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Surge shock incoming: Government just allowed cab apps to hike peak-hour fares

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The Ministry of Road Transport and Highways has revised guidelines for ride-hailing platforms like Uber, Ola, and Rapido, allowing surge pricing up to twice the base fare during peak hours, increased from the previous 1.5x cap. Non-peak fares must remain at least 50% of base fare.

Key changes include a 10% cancellation penalty (capped at ₹100) for both drivers and passengers, mandatory insurance coverage of ₹5 lakh health and ₹10 lakh term insurance for drivers, and compulsory vehicle tracking devices linked to state control centers.

The ministry aims to balance affordability with preventing predatory pricing. States must adopt these guidelines within three months, with annual driver training and quarterly refresher courses for underperforming drivers now mandatory.

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