Tamil Nadu’s New Aggregator Policy: What It Means for Your Daily Commute

If you book rides through your phone on a regular basis  whether that’s a car, an auto, or even a bike ; you have probably seen (or felt) some inconsistency in the experience. The pricing jumps up without warning, drivers complain about how much they make, and there’s confusion over rules for luggage or passenger limits.

So, the Tamil Nadu government is rolling out its first Aggregator Policy, which is planned to go live in the last week of August 2025. The policy will become the official policy around how app-based transport services will operate in the state. 

In this guide Let’s break it down for better understanding what is this policy  and why is it being brought .

What is the Aggregator Policy? 

An “aggregator” is a company or service that connects passengers and drivers through a digital platform, but does not own vehicles; the company acts as a middleman between the person needing the ride and the person giving the ride.

Simply put, the Aggregator Policy is the jotted down document, or rulebook, that clarifies:

• How these companies can operate in the state of Tamil Nadu
• What license they need
• How fares can be set
• Driver remuneration
• Rights and responsibilities for passengers and drivers

Essentially, it is written rules to ensure a fair, safe and transparent industry.

Why is Tamil Nadu rolling out this Policy now?

Tamil Nadu has never had a dedicated, state specific framework for these services until today. Until now, companies could set their own prices and conditions. This caused issues such as:

• Massive and sudden surge prices.
• Drivers receive little of the fare.
• Potentially misleading limits to passengers and luggage.
• Lack of any reasonable way of responding to complaints.

This Government aims to resolve these issues, by establishing a clear set of standards to which companies and drivers must adhere while safeguarding the passenger’s rights. Passengers will also find it easier to handle transport-related fines, as services like our Tamil Nadu E Challan make it quick to check and pay penalties online.

The Main Changes 

Here’s a breakdown of the most important parts of the new policy which are the changes ; 

1. Every Operator Must Get a License

For the future, any business in Tamil Nadu that offers app-based rides must have a proper state license.

• License costs: ₹5 lakh for five years.
• Renewal: After five years, the license must be renewed if you want to continue operations.

Why this is important : The law states that only approved and registered operators may provide rides. The rides will be more safe and reliable, because the government will now have something to reference if an operator breaks the law.
For more details on licensing, vehicle registration, and other transport services, visit our Tamil Nadu RTO information page.

2. Fare Rules for More Consistent Pricing 

One of the main frustration points for passengers is not knowing what they are going to be charged for a ride until the last second, including when the ride costs double and triple in peak hours. 

The new policies will help create more consistency in fares by: 

• Setting a base fare for the first 3 kms that will be set by the state government. 
• Allowing fares to potentially go lower during non-peak times (e.g., 50% below the base fare). 
• Surge pricing capped at 2 times the base fare, and only during high demand. 

Why this is important :  Even if fares increase during peak times, they aren’t going to be outrageously high and you will know the maximum possible fare before you book.

3. Better Pay for Drivers

Drivers are a key part of the service, and many have reported that they take home considerably less than they expected after the commission cut. This policy set the payments to be clear: 

• If the driver owns the vehicle: They must take home at least 80% of the fare. 
• If the company owns the vehicle: The driver must take home at least 60% of the fare.

Why this is important : Fairer pay could result in drivers being more happy and motivated; fair pay usually means better service from drivers with fewer disputes.

4. Comprehensive Guidelines for Passengers and Baggage Limits

There will be no more arguing about how many people you can fit in the car, or number of bags you can take onboard the vehicle! The policy will contain clear guidelines for:

• Maximum number of Passenger per type of vehicle 
• Maximum size and weight limits for luggage 
• Policy for travelling with pets or other special requests. 

Why this is important : You’ll have certainty. You’ll know what you can and cannot do before you complete your booking.

5. More Transparency and Accountability

The policy places emphasis on ensuring greater clarity for passengers throughout the ride process, such as:

• Pre-booking fare estimates,
• Clear cancellation policies (including charges),
• Complaints processes that are monitored and actionable.

Why this is important : If something goes wrong, there will be a proper mechanism to report it and the company will be obliged to respond.

How This Will Change Your Daily Trip

Let’s use two examples (pre-policy and post-policy).

Pre-policy:

You order a ride to get to the station. The fare looks reasonable, but by the time you confirm the ride it has jumped up because of peak pricing. The driver complains about low earnings. You discuss carrying two bags with them. There is no viable way to give a proper complaint.

Post-policy:

You open the app. There is a base fare and a maximum surge is visible. Your luggage complies with the stated parameters so you aren’t arguing over that. The driver is in a better mood as they are getting paid a fairer wage. If there is an issue, you can utilize a complaint system that is obligation bound to respond.

Check: Top Tamil Nadu E-Challan Fines You Didn’t Know About : Hidden Traffic Violation Rules

Your Role in This Policy

The draft will be made available for public comment before the policy is finalised. This allows you to provide input on, what works well, what doesn’t, and what needs to change. 

You may want to comment on: 

• Whether you think the surge price limits are reasonable. 
• The percent paid to drivers, whether it should be higher. 
• Any safety concerns for specific ride types.

Your feedback can directly impact improving the final policy and version.

Potential Benefits for Passengers.

• Included licensed drivers may lead to safer rides.
• Prices are now more predictable and fair.
• There are clear rules with regard to bags and luggage.
• Initiating a problem resolution process is now more timely and easier.

• Guaranteed minimum fare share.
• Clarified work and payment rules.
• Establishing objective experience cues with passengers has created a fairer relationship.

Conclusion

The new Aggregator Policy from Tamil Nadu is more than just a price change for rides; it’s about creating a fair process for everyone involved: Passengers get clearer rules, safer rides, and clearer fares. Drivers win on fair remuneration and acknowledgement for what they do.

The 4th week of the implementation period is August 2025, so these driver’s changes could come quite soon and are something to keep in mind. 

When the draft is released, take a moment to read it and express your opinion. You’re the consumer your voice is important!