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How do I start a cab business with Uber or Ola in India?

You can drive your own car on Uber, Ola or Rapido, or own cars and hire drivers as a fleet partner; either way each car must be commercially registered with a permit, commercial insurance, fitness and PUC, and each driver needs a licence with a public service vehicle badge and police verification. Uber's India requirements for a driver-owner are a driving licence, vehicle registration, insurance and permit, and a fleet partner needs the same papers for every vehicle plus at least one driver. Under the Motor Vehicles Aggregator Guidelines 2025, issued on 1 July 2025 for states to adopt, a driver who brings their own vehicle must receive at least 80% of the fare, and surge pricing is capped at twice the base fare. Before you buy a car, set the EMI, fuel, insurance and maintenance against the fares you can realistically earn in a day in your city. What kills most cab businesses is a car loan taken on optimistic earnings, and hired drivers who leave.

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Uber's own list of what each of its three partner types needs in India: a driver-owner needs a driving licence, vehicle registration, insurance and permit; a driver under a partner needs a licence; a non-driving fleet partner needs papers for each vehicle.

Uber driver requirements (India)

From uber.com by Uber Official page

  • A fleet partner owns vehicles and manages at least one driver.
  • Requirements vary by city; check locally.
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📄 Article
✓ Link checked India Free Beginner

Business Standard's July 2025 report on the Motor Vehicles Aggregator Guidelines 2025, quoting the rule that a driver onboarded with their own vehicle must receive at least 80% of the fare, and the cap on surge pricing at twice the base fare.

Govt permits surge fares of up to 2x base rate for cab aggregators

From business-standard.com by Business Standard 4 min read

  • A driver who owns the vehicle keeps at least 80% of the fare.
  • Surge pricing is capped at 2x the base fare.
  • States adopt the guidelines; check yours.
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✓ Link checked India Free Beginner

A July 2026 guide to attaching cabs to Uber, Ola or Rapido versus running your own app: each cab needs a contract carriage permit, a driver with a PSV badge and police verification, and an AIS-140 tracker with panic button; aggregators pay drivers at least 80% of the fare on driver-owned vehicles.

How to start a taxi business in India: permits and cost

From calcguru.in by CalcGuru 10 min read

  • You need no aggregator licence to attach cabs to Uber or Ola; the platform holds it.
  • An All India Tourist Permit costs roughly Rs 20,000 to 30,000 a year per cab.
  • Budget Rs 5,000 to 10,000 per cab for the AIS-140 tracker.
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✓ Link checked India Free Beginner

The official description of Mudra loans for non-farm micro enterprises in manufacturing, trading and services: loans up to Rs 20 lakh in four tiers (Shishu, Kishore up to Rs 5 lakh, Tarun up to Rs 10 lakh, and Tarun Plus up to Rs 20 lakh for those who repaid a Tarun loan).

Pradhan Mantri Mudra Yojana (PMMY)

From myscheme.gov.in by Ministry of Finance, on myScheme Scheme page

  • Mudra covers small business loans up to Rs 20 lakh through banks and NBFCs.
  • Tarun Plus (up to Rs 20 lakh) is only for borrowers who have repaid an earlier Tarun loan.
  • Applications up to Rs 5 lakh should be decided within two weeks, per the banking code the page cites.
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