Amid growing complaints over steep surge pricing by private cab aggregators, Union Road Transport and Highways Minister Nitin Gadkari on Thursday informed Parliament that the government-backed ‘Bharat Taxi App’ is currently in the testing and trial stage.
The mobile-based platform is being developed to promote a driver-owned taxi service operating on a cooperative model under the Sahahkar Taxi Cooperative Limited (STCL). Gadkari, in a written reply to the Lok Sabha, said enrolment of drivers and platform development are underway with support from the National Cooperative Development Corporation (NCDC).
What Bharat taxi model aims to do
The project is designed to offer an alternative to private ride-hailing apps, giving drivers a larger share of earnings and reducing dependence on aggregator-controlled pricing. A new multi-state cooperative society has already been registered, and groundwork for scaling up operations is in progress.
Government tightens rules for aggregators
Gadkari highlighted that the Centre has notified the Motor Vehicles Aggregators Guidelines, 2025, providing a light-touch regulatory system for app-based cab services while prioritising passenger safety and driver welfare. States will continue to be the licensing authority for aggregators.
The guidelines also introduce fare regulation, especially around surge pricing.
Aggregators may offer fares 50 per cent lower than state-notified base fares.
Surge pricing is capped at a maximum of twice the base fare during peak demand.
To ensure transparency, the base fare fixed by state governments will remain the benchmark for all fare calculations.
Higher share for drivers
Drivers operating their own vehicles must receive at least 80 per cent of the fare.
Drivers operating aggregator-owned vehicles must receive at least 60 per cent of the fare.
Gadkari noted that during periods of surge pricing, the primary beneficiary will be the driver, encouraging more drivers to be available during peak hours and improving supply.
Penalties for violations
The guidelines also allow suspension or cancellation of aggregator licences for violations such as unjustified fares or misuse of dynamic pricing. Additionally, passengers will not be charged for dead mileage except when the pickup distance is below 3 km. Fares will apply strictly from the origin point to the destination.
