New Delhi, Dec 11 (NationPress) In light of increasing instances of surge pricing by private online cab aggregators, a mobile application named 'Bharat Taxi App' is currently undergoing testing and trial, as revealed by Union Road Transport and Highways Minister Nitin Gadkari during a parliamentary session on Thursday.

The objective of the Bharat Taxi App is to facilitate a driver-owned taxi service operating on a cooperative model, under the supervision of the Sahakar Taxi Cooperative Limited (STCL), Gadkari mentioned in a written response to a Lok Sabha inquiry.

The National Cooperative Development Corporation (NCDC) is instrumental in launching the cooperative-oriented 'Bharat Taxi' ride-hailing service. The registration of a new multi-state cooperative society has been completed, and efforts for driver enrollment and technological enhancements are currently ongoing, as stated by the government earlier.

Gadkari elaborated that the government has implemented The Motor Vehicles Aggregators Guidelines, 2025 for aggregators, including app-based taxi services, aiming to create a light-touch regulatory framework that addresses user safety and driver welfare. The state government’s designated authority holds the power to issue licenses for such aggregators, covering the entire state.

In addition to passenger protections, these Guidelines outline fare regulations.

“Recognizing that fares are influenced by market dynamics pertaining to the demand and supply of aggregated vehicles, the Guidelines permit dynamic pricing, enabling aggregators to set fares at up to 50 percent lower than the state-determined base fares while capping maximum surge pricing at twice the base fare during peak hours,” stated the minister.

“To ensure transparency, accountability, and passenger welfare, the state-notified fare will serve as the base fare.”

As per the guidelines, drivers who own their vehicles will receive at least 80 percent of the fare, whereas drivers using vehicles owned by the aggregator will receive a minimum of 60 percent of the fare.

Thus, during surge pricing, the primary beneficiary will be the driver of the owned vehicle. This mechanism is expected to enhance supply and improve availability during high-demand periods, according to Gadkari.

Furthermore, the Guidelines stipulate the possibility of suspending or revoking an aggregator's license for various violations, including charging passengers unreasonable or dynamic fares.

“The Guidelines also guarantee that no passenger will incur charges for dead mileage, except when the distance to avail the ride is less than three kilometers, with fares applicable only from the point of origin to the destination,” added the minister.