Gujarat will soon announce a policy for app-based cab and auto aggregators, with mandatory minimum fares and penalties for operators that violate the rules, according to a senior state transport department official quoted by Ahmedabad Mirror.
The policy is being prepared after disputes involving app-based aggregators such as Ola, Uber and Rapido, including driver boycotts and complaints from passengers about overcharging. The state transport department has held two rounds of discussions with driver unions as it works on the rules.
The official said Gujarat’s policy would be framed in line with national guidelines issued for cab aggregators. The state is expected to announce the new rates shortly. The proposed framework will require cab operators to follow a minimum base fare, although the report did not specify the exact amount that Gujarat plans to notify.
Under the national guidelines cited in the report, aggregators can use dynamic or surge pricing of up to twice the base fare during peak hours. During non-peak hours, fares can be set at a minimum of 50% of the base fare. The Gujarat policy is expected to define how these provisions will apply to services operating in the state.
The fare decision comes amid continuing tensions between ride-hailing platforms and drivers. Drivers have urged passengers to shift to Bharat Taxi, a cooperative-based ride-hailing model, while passengers have raised concerns about the prices charged for cab and auto rides. The state’s consultations with unions indicate that driver demands are part of the policy discussion, although the report does not detail the proposals made during the meetings.
The rules will also operate alongside a national restriction on pre-ride tipping prompts. The Ministry of Road Transport and Highways has barred aggregators from displaying prompts that nudge passengers to pay extra to secure a ride faster. The measure is intended to prevent additional payments from becoming a condition, explicit or otherwise, for obtaining a ride.
For passengers, the Gujarat policy is expected to establish a clearer fare floor and define the limits within which platforms can vary prices. For drivers and operators, the central issue will be how the state applies the national provisions on peak-hour pricing, non-peak fares and penalties. The exact fare levels, enforcement mechanism and date of implementation remain to be announced by the state government.
