Will vehicles of Ola, Uber and Rapido older than 8 years be banned? Details here

In order to improve road safety and curb urban pollution, the Ministry of Road Transport and Highways has imposed an age limit on vehicles that can be used by an aggregator, including Ola, Uber and Rapido. The vehicles will be allowed to run only up to 8 years from the date of registration. The new guidelines also require the vehicle owner to deregister their vehicles that exceed the age limit.

The new guidelines issued under the Motor Vehicles Aggregator Guidelines, 2025, will be applicable across the country and will come into effect for thousands of commercial drivers currently running older cars under aggregator apps.

“An aggregator shall not onboard vehicles which have been registered for more than a period of eight years from the date of initial registration of the vehicle and shall ensure that all vehicles onboarded by it should not have exceeded eight years since the date of initial registration of the vehicle," the Ministry said.

According to a report in News 18, the government has also made it compulsory to show a copy of the driver’s licence and the motor vehicle permit inside the motor vehicle, except for motorcycles. “The said display shall be on the back side of the front seat next to the driver in such a manner as shall be clearly visible to the passengers in the motor vehicle," the Ministry added.

The guidelines also directed the app to display a clear and high-resolution picture of the driver onboarded on the app of the aggregator, mandating the drivers to undergo a psychological analysis administered by the aggregator to figure out whether “they are fit to be onboarded".

official explained that cab operators will now be required to conduct psychological assessments of drivers to evaluate their mental and emotional well-being. “This has to be done by the aggregator. The aim is to check if the driver is mentally stable, emotionally balanced, and fit to handle the stress of driving and interacting with passengers," the official explained.

This move signals a shift toward more rigorous regulation of aggregator-operated vehicles. Previously, such requirements were not part of the guidelines. Until now, cab aggregators followed the 2020 framework, the “Motor Vehicle Aggregator Guidelines 2020”, issued under Section 93 of the Motor Vehicles Act, 1988.

Uber, Ola, and Rapido to charge 2x of base fare

In a significant development, the Centre has now permitted ride-hailing platforms like Ola and Uber to charge up to twice the base fare during peak hours, compared to the earlier cap of 1.5 times. During off-peak periods, they must charge no less than 50 per cent of the base fare.

Additionally, under the newly released Motor Vehicle Aggregator Guidelines (MVAG) 2025, the ministry has introduced a cancellation penalty: a fee equal to 10 per cent of the fare (capped at Rs 100) will apply to drivers who cancel rides without valid reasons. Passengers will face a similar penalty for unjustified cancellations.