New Delhi, July 8 -- The Centre's new Motor Vehicles Aggregator Guidelines, released last week, redraws the playbook for ride hailing apps. While dynamic pricing gets a nod, states still have the final word. Mint explains what it means for aggregators, drivers and riders alike.

The new guidelines allow aggregators to implement dynamic pricing based on demand, within limits. Simply put, dynamic pricing, or surge pricing, is when fares fluctuate in real time based on demand and supply-like during airport rush hours. States can set a base fare for the first three kilometres-say Rs.100. Depending on demand, the fare can range from Rs.50 (50% below) to Rs.200 (twice the base). If a state hasn't set a fare, the aggregator can notify one tempor...