Ride-hailing service companies have changed the way India travels. They have made our journeys more convenient. But is that really true? The ground reality often tells a different story.
Currently, India is hosting the AI Impact Summit 2026, and a large number of visitors from different parts of the country have arrived to attend the event. However, when it is time to return home, many find themselves without transportation options. Why? Because half the roads are blocked for VIP movement, some visitors with their own vehicles are stuck in traffic, and the nearest metro stations are closed for security reasons. At this point, the only hope visitors have is to depend on these ride-hailing service companies.
They open the app to book a ride, and the first thing they see is a price hike of more than double the usual fare. Normally, on these apps an auto might charge around ₹180 for a 10 km distance. But during such situations, the price gets tripled, showing ₹400–₹500. Suppose you book an auto to go home. The driver accepts the ride, makes you wait for 20 minutes, and then cancels because they have accepted another booking from someone willing to pay more. After waiting for so long, your ride gets canceled, and you are left with no option. You cannot even complain effectively, there is no clear accountability.
Normally, state governments set the base price for these apps. In Delhi, for example, it is around ₹20 per km for taxis. Under the Motor Vehicle Aggregator Guidelines (MVAG) 2025, companies are allowed to charge up to 2x (double) the base price during peak hours and reduce fares to as low as 50% during non-peak hours. But in reality, prices often appear to go beyond this limit.
Let us assume they are following the rule of doubling the price during peak hours. Even then, what is the responsibility of the government? The arrangements made during the AI Impact Summit 2026 seem focused only on VIPs. People with their own vehicles spend hours trying to park, while those without vehicles walk kilometers just to reach home. Others wait endlessly for autos or cabs, unsure if one will even arrive. On February 18, 2026, people reportedly walked from Bharat Mandapam to the Supreme Court metro station, only to find that it had already been shut down for security reasons.
Fleet Expansion and Congestion
These companies have added millions of vehicles to Indian roads. This has increased traffic in major cities, especially in busy commercial areas during peak hours. Delhi is one of the best examples. Studies suggest that many ride-hailing trips replace public transport options like the Metro, which are more sustainable and help reduce congestion.
Another issue is the rise of “illegal” bike taxis operating under private (white) number plates rather than commercial ones. This has created safety concerns and legal disputes in states such as Karnataka and Maharashtra.
Pricing and Money Distribution
Under the MVAG 2025 guidelines, companies are allowed to charge surge pricing up to two times the base fare. During heavy rain, festivals, or peak hours, fares can become very expensive, leaving commuters with limited options.
At the same time, many platforms have shifted to a subscription (SaaS) model. In this system, drivers pay a fixed daily or weekly fee to the platform and keep the remaining fare. While this may sound beneficial, many drivers say that the fixed fees, combined with rising fuel prices, make it difficult to earn a stable income.
Due to these issues, a nationwide strike took place on February 7, 2026. Driver unions demanded that the government set a minimum base fare. They argue that around 40% of gig workers earn less than ₹15,000 per month and need better income protection.
How Are Fares Set?
The Motor Vehicle Aggregator Guidelines 2025 were introduced to bring stronger regulation to ride-hailing platforms and prevent unfair or unaffordable pricing for consumers. These guidelines became necessary because dynamic pricing models sometimes led to extreme fare hikes during peak hours, emergencies, or bad weather. It rains, and suddenly you are paying ₹500 just to reach home.
Base Fare: This is the minimum fare for the first 3 km, fixed by individual state governments. In metro cities like Delhi, this typically ranges between ₹18–₹21 per km for cabs.
Surge Pricing (Peak Hours): Aggregators can charge up to 2x (double) the base fare. If the base fare is ₹20 per km, the peak fare can legally reach ₹40 per km during heavy demand. But if consumers still have to pay double or sometimes even feel like they are paying triple during emergencies, what was the real purpose of introducing MVAG 2025?
Off-Peak Discounts: Fares can be reduced to a minimum of 50% of the base fare during low-demand hours. However, this benefit is rarely visible to most commuters.
Dead Mileage: A newer provision allows a “long-pickup” fee if a driver travels more than 3 km to reach the pickup location. This compensates drivers for their fuel and time. This, at least, is a positive initiative for drivers.
Today, many commuters face ride cancellations after waiting for long periods or are forced to pay very high fares. At the same time, drivers are demanding dignity and financial security. This shows that “convenience” is no longer equal for everyone. It has become something accessible mainly to those who can afford higher prices, while the average Indian remains stuck between big digital promises and everyday reality.
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