Very soon, if you are in Maharashtra and your Uber/Ola driver cancels a booking without a valid reason, a penalty of 10 per cent of the fare or ₹ 100–whichever is less–will be imposed on the driver.
Similarly, if a passenger cancels a booked ride without a valid reason, a penalty of 5 per cent of the fare or ₹50 will be awarded to the driver.
Besides, fares during peak hours cannot be higher than 1.5 times the base fare determined by the Regional Transport Authority.
These and other significant changes regarding transparency in fares, safety, well-being of drivers and operational guidelines for cab aggregators were part of the Government Resolution (GR) issued by the Maharashtra government on its Aggregator Policy on Tuesday.
The decision had been cleared by the state cabinet on April 29 and represents a big leap towards making commuting more transparent and passenger-friendly while encouraging fair trade and technology integration in app-based transport.
The new policy requires all aggregators running app-based taxi, rickshaw, or carpooling services to be registered entities, either a company or a cooperative, and have a physical office anywhere in Maharashtra.
They are also asked to abide by the clauses of the Motor Vehicles Act, 1988, and the Information Technology Act, 2000.
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The state transport department, as per a Supreme Court order and central government directives in 2020, drafted the policy under a special committee headed by retired IAS officer Sudhir Kumar Shrivastava.
For the everyday commuter, the new regulations offer a good deal. The government has imposed rigid limits on fares to safeguard commuters from exorbitant surge fares.
In off-peak hours, platforms can give concessions, but not more than 25 per cent of the base fare.
In a city like Mumbai, where traffic congestion and cancellations are routine, the policy imposes definite penalties for the same — a penalty of 10 per cent of the fare or ₹100 if a driver cancels a booking without a valid reason, and a fine of 5 per cent of the fare or ₹50 if a passenger cancels a booked ride without a valid reason. The deductions will be made automatically through the app to maintain accountability on both sides.
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For drivers, the policy has numerous advantages. At least 80 per cent of the fare should be paid directly to the driver, guaranteeing reasonable compensation for their services. Aggregators must also ensure that drivers receive proper training, background checks, and valid insurance coverage.
To strengthen safety for both the driver and the passenger, real-time GPS tracking, emergency contact numbers and in-app grievance redressal mechanisms are now mandated.
Maharashtra’s drive towards sustainability also finds a place in the policy. Aggregators will have to progressively introduce electric vehicles (EVs) in their fleet and implement provisions of the state’s EV policy. The transition shall be introduced progressively, as it aligns with the larger goal of controlling vehicular emissions.
Carpooling services have also been regulated. Platforms are required to authenticate identities, offer full contact information and confirm insurance coverage for both parties.
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For the sake of security, especially for women passengers, the policy gives women the option of choosing ‘female-only’ carpools. According to the GR, users who provide rides through carpooling apps will be permitted to list up to 14 ride postings in a week, preventing commercial exploitation of the system.
With this new Aggregator Policy, Maharashtra becomes one of the few Indian states to provide a detailed, enforceable framework for digital mobility platforms. The government has confirmed that these rules will be enforced immediately to ensure an equitable aggregator ecosystem.