Maharashtra's New Cab Aggregator Policy to Take Effect from June 2: Key Changes Explained
The Maharashtra government has announced a new policy for app-based cab services, effective from June 2. The policy includes regulations on surge pricing, trip cancellations, and fare structures to ensure a reliable and safe transport service.
Cab AggregatorMaharashtraOlaUberRegulatory UpdatesReal EstateMay 26, 2025
Once licensed, cab aggregators will be required to update their mobile apps to comply with several new rules—including curbing surge pricing and penalising trip cancellations by both drivers and passengers.
Fines for Trip Cancellations by Drivers and Passengers
The policy, recently cleared by the state cabinet, introduces financial deterrents to reduce frequent ride cancellations that inconvenience users.
“To ensure accountability on both ends and provide a reliable transport service, monetary penalties will apply for unwarranted cancellations,” Bhimanwar said.
If a driver cancels a ride after accepting it, a penalty of 10% of the fare or ₹100, whichever is lower, will be deducted and credited to the rider. Conversely, if a passenger cancels a booking without valid reason, they will be charged 5% of the fare or ₹50, whichever is lower, which will go to the driver.
Caps on Dynamic Pricing and Fare Structure Reforms
The new rules also aim to balance competition with traditional taxis by regulating pricing strategies. “Base fares must align with the regional transport authority’s rate card for metered cabs and auto-rickshaws,” the transport department noted in its resolution.
To prevent excessive pricing during high demand, app-based cab fares cannot exceed 1.5 times the base rate. During off-peak hours, discounts are allowed but must not exceed 25% below the base fare.
Other major fare-related provisions include:
Minimum trip distance: 3 kilometres
Driver’s share of fare: At least 80% of the total fare amount
App Compliance and Passenger Safety Protocols
Aggregator apps must also comply with enhanced safety and service standards. The policy mandates:
Real-time GPS tracking of vehicles
Emergency helpline numbers within the app
Thorough background checks on drivers
A functioning customer support mechanism to address rider and driver complaints promptly
“All services must operate through a secure and government-compliant app or website. Passenger safety and service transparency are non-negotiable,” said a senior official from the transport department.
Frequently Asked Questions
When will the new cab aggregator policy take effect in Maharashtra?
The new cab aggregator policy will take effect from June 2, 2025.
What are the penalties for trip cancellations by drivers and passengers?
If a driver cancels a ride after accepting it, a penalty of 10% of the fare or ₹100, whichever is lower, will be deducted and credited to the rider. If a passenger cancels a booking without valid reason, they will be charged 5% of the fare or ₹50, whichever is lower, which will go to the driver.
How will the new policy regulate surge pricing?
App-based cab fares cannot exceed 1.5 times the base rate during high demand. During off-peak hours, discounts are allowed but must not exceed 25% below the base fare.
What is the minimum trip distance under the new policy?
The minimum trip distance is 3 kilometres.
What safety measures are mandated by the new policy?
The policy mandates real-time GPS tracking of vehicles, emergency helpline numbers within the app, thorough background checks on drivers, and a functioning customer support mechanism to address rider and driver complaints promptly.
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