Gujarat is preparing a new policy for app-based cab and auto aggregators that will introduce a mandatory minimum base fare and penalties for operators that violate the rules, according to a senior state transport department official quoted by Ahmedabad Mirror.
The policy is expected to be announced shortly and will cover aggregators such as Ola, Uber and Rapido. The state transport department has held two rounds of discussions with driver unions following disputes involving app-based platforms, driver boycotts and complaints from passengers about overcharging.
The official said the Gujarat rules would be framed in line with national guidelines notified by the Centre. The state is expected to use those guidelines to determine the minimum fare that operators must follow. The precise rates have not yet been announced.
Under the national framework cited in the report, aggregators may charge up to twice the base fare during peak hours through dynamic or surge pricing. During non-peak hours, the fare is permitted to fall to a minimum of 50% of the base fare. Gujarat’s forthcoming policy is expected to apply these provisions through state-level rules and a fare structure for local operations.
The proposed minimum fare is intended to establish a floor below which app-based cab and auto services cannot price rides. Any violation of the state rules could attract penalties, although the report does not specify the amount or enforcement mechanism. It also remains unclear whether the policy will prescribe separate rates for different vehicle categories, trip distances or cities within Gujarat.
The move follows a period of friction between drivers, passengers and ride-hailing companies. Drivers associated with Ola, Uber and Rapido have faced disputes over earnings and platform operations, while passenger complaints have included allegations of excessive charges. Some drivers have also urged passengers to shift to Bharat Taxi, a cooperative-based ride-hailing model.
The fare issue places the state transport department at the centre of a platform-based mobility system in which the price paid by passengers and the income received by drivers are shaped by aggregator algorithms. A state-mandated base fare would give regulators a clearer reference point for assessing whether operators are complying with the national pricing framework.
The policy discussions are also taking place as the Centre has moved to restrict practices that can increase the price of securing a ride. The Ministry of Road Transport and Highways has officially barred pre-ride tipping prompts, which had encouraged passengers to pay extra to obtain a ride faster. The ban is separate from the proposed Gujarat fare policy but forms part of the wider regulatory framework for app-based transport services.
The state government has yet to publish the final fare schedule, penalty provisions or implementation date. The next formal step will be the announcement of the Gujarat policy and its minimum rates for app-based cabs and autos.
