Haryana govt to now notify cab base fares, bans dead mileage charges

LocalCars
23 May 2026 • 7:24 PM MYT
Tribune
Tribune

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The Haryana government has notified ‘Haryana Motor Vehicles (Amendment) Rules, 2026,’ which will now regulate fares charged from passengers by cab aggregators like Ola, Uber, and Rapido.

Earlier, the rules were approved in the Haryana cabinet meeting on May 18.

As per the rules promulgated on May 21, the Haryana government may notify fare or base fare for the respective category or class of motor vehicles to be charged from the passengers/customers availing services from the aggregator”. However, in case the base fare or base fare is not notified by the State Government, the cab aggregator will do so and it “shall remain in force till such time as the state government determines the fare.”

No passenger shall be charged for dead mileage except when the distance for availing the ride is less than three kilometres, and the fare shall be charged only from the point of origin of the journey to the point of destination — where the passenger is dropped off.

The driver on boarded along with the motor vehicle, with “the aggregator and/or delivery service provider shall receive at least 80 per cent of the fare applicable, including all costs under the driver’s fare.” For vehicles owned by the aggregator, the drivers must get at least 60 per cent of the fare.

Dynamic pricing

The notified rules define “dynamic pricing”, which means the output of the fare algorithm of the cab aggregator, which raises the price of a journey when demand for trips exceeds supply. In case there is unjustified imposition of dynamic pricing, the licence of cab aggregator will be cancelled.

Cancellation of rides

On the cancellation of a booking by a driver after accepting a journey on the app, a penalty of 10 per cent of the fare, not exceeding Rs 100, shall be imposed where such cancellation is made without a reason identified as valid by the aggregator and/or delivery service provider.

However, upon cancellation of a booking by a passenger, a fee of 10 per cent of the fare, not exceeding Rs 100, shall be collected when such cancellation is made without a valid reason and is duly and specifically mentioned on the aggregator’s and/or delivery service provider’s website and app.

Insurance for passengers, drivers

Cab aggregators must ensure a minimum insurance cover of Rs 5 lakh for passengers. They have to ensure health insurance of not less than Rs 5 lakh for each driver on-boarded, which shall be increased each year by such percentage as notified by the Central government. Along similar lines, they have to ensure term insurance of not less than Rs 10 lakh for each driver on-board.

Safety for passengers

Every on-boarded vehicle must carry a functional GPS tracking device with a panic button, a fire extinguisher of suitable capacity, a first-aid kit and a copy of the driver’s license displayed visibly inside the vehicle.

Drivers must follow the app-assigned route, and any deviation will automatically trigger an alert to the aggregator’s 24×7 control room. A passenger’s live location-sharing feature will be active throughout the journey, but will automatically be disabled once the trip ends.

Licence fee

Any company seeking to operate as a ride or delivery aggregator in Haryana will now have to pay a licensing fee of Rs 5 lakh and furnish a bank guarantee of up to Rs 50 lakh, depending on the size of its fleet.

Licenses are valid for five years, with renewals costing Rs 25,000. The fleet to be inducted from January 1, 2026, shall only be CNG, EV, battery-operated, or any other cleaner fuel for operation in the NCR area of the State. The aggregator shall develop a mechanism in the app for both, the driver and the passenger to rate the quality of the overall experience of a journey.

The Transport Commissioner holds the power to suspend licences of cab aggregators for up to three months for violations, including failure to ensure passenger or driver safety, unjustified dynamic pricing or unfair fare splits, failure to honour driver contracts, safety standard violations leading to road accidents, and serious financial irregularities

If suspension isn’t deemed appropriate, fines ranging from Rs 1 lakh to Rs 1 crore may be imposed based on the severity of the violation. Repeat offenders — those suspended twice within three financial years — risk outright licence cancellation, with their bank guarantee forfeited and other states and the Central Government formally notified.

The list of aggregators and delivery services providers in Haryana includes Ola cabs, Uber India, Myntra, Blue Dart, Delhivery, DHL, Ekart Logistics, DTDC, Flipkart, Zomato, Swiggy, Amazon, etc.