The Maharashtra government has introduced a new policy that directly targets the recurring issue of ride cancellations by app-based cab drivers. Under the revised Aggregator Guidelines, any driver who cancels a ride without a valid reason will face a penalty of 10% of the ride fare, capped at Rs 100. This fine will be automatically deducted and credited to the passenger’s account, aiming to bring greater discipline and reliability to ride-hailing services across the state.
The policy, notified through a recent Government Resolution and approved by the state cabinet, is part of a broader regulatory framework designed to ensure fair practices and smoother experiences for both riders and drivers. The move comes after repeated complaints from commuters about arbitrary cancellations, especially during peak hours or for short-distance trips, which often left passengers stranded or forced to pay higher fares.
Penalties for Passengers and Fare Regulation:
The new rules do not just penalize drivers. Passengers who cancel a booked trip without justification will also face a fine—5% of the fare, capped at Rs 50, which will be credited to the driver’s account. This dual-penalty system is designed to discourage unnecessary cancellations from both parties and ensure a more accountable and balanced relationship between drivers and riders.
Additionally, the policy introduces strict regulations on fare structures. Fares during peak hours cannot exceed 1.5 times the base fare as determined by the Regional Transport Authority. During off-peak hours, discounts are allowed but are capped at 25% of the base fare. The minimum trip distance for the base fare has been fixed at 3 kilometres, ensuring fair compensation for drivers even on shorter rides.
Aggregator and Driver Responsibilities: Registration, Safety, and Training
The new Aggregator Policy requires all app-based taxi, rickshaw, or carpooling services to be registered entities—either as companies or cooperatives—with a physical office in Maharashtra. Aggregators must comply with the Motor Vehicles Act, 1988, and the Information Technology Act, 2000, and are mandated to maintain safety-compliant platforms.
For drivers, the policy ensures several benefits. At least 80% of the fare must be paid directly to the driver, guaranteeing reasonable earnings. Aggregators are responsible for providing proper training, conducting background checks, and ensuring valid insurance coverage for drivers and passengers. Real-time GPS tracking, emergency contact numbers, and an in-app grievance redressal mechanism are now mandatory safety features.
The policy also encourages a gradual shift towards electric vehicles (EVs), with aggregators expected to incorporate more EVs into their fleets over time. This is part of a broader push for sustainability and reduced emissions in Maharashtra’s urban transport sector.
Impact on Commuters and the Ride-Hailing Industry:
The new rules provide major advantages for regular commuters. The policy seeks to improve the transparency, dependability, and passenger experience of app-based taxi services by restricting surge pricing and imposing cancellation fines. Accountability is ensured by the app’s automatic deduction of fines, and the pricing structure guards against traditional metered taxis being undercut or overcharged.
The Aggregator Policy is expected to improve trust in ride-hailing platforms, reduce instances of last-minute cancellations, and enhance overall satisfaction for both drivers and passengers. By mandating safety features and fair compensation, the government also seeks to improve working conditions for drivers and ensure safer rides for all, especially women and vulnerable commuters.
Maharashtra’s new policy marks a decisive step towards regulating the rapidly growing app-based transport sector. By introducing financial penalties for arbitrary cancellations and setting clear guidelines for fares, safety, and aggregator responsibilities, the state aims to create a more balanced and commuter-friendly urban mobility ecosystem.
