Maharashtra’s New Cab Rules: Safer Rides, Fairer Fares, and Real Compensation for Cancellations

Maharashtra is set to transform the ride-hailing experience with the launch of the Aggregator Cabs Policy 2025, a comprehensive framework designed to make app-based taxi services like Ola, Uber, and Rapido safer, more transparent, and commuter-friendly.

What’s Changing for Passengers?

• Compensation for Cancellations: If a driver cancels a confirmed ride, the passenger will receive compensation – either ₹100 or 10% of the fare, whichever is lower. Conversely, if a passenger cancels, they must pay the driver ₹50 or 50% of the fare, whichever is less. This aims to discourage arbitrary cancellations and protect both parties from inconvenience.
  Surge Pricing Cap: Surge fares are now capped at 1.5 times the base rate, putting an end to unpredictable price hikes during peak hours. Discounts of up to 25% are allowed during off-peak periods, making rides more affordable.
• Enhanced Safety for Women: Women passengers can opt for women-only ride-sharing options. Aggregators must implement real-time GPS tracking, in-app emergency contact features, and ensure thorough police verification of drivers.
• Vehicle Standards: Cabs in poor condition will be removed from platforms, ensuring a safer and more comfortable ride for all.
  

Improvements for Drivers

• Fairer Earnings: Drivers are guaranteed at least 80% of the fare for every ride, ensuring better pay and financial security.
  Welfare and Training: Aggregators must provide medical insurance for drivers and their families and offer mandatory training, especially for those with low customer ratings. Refresher courses will be required for drivers who consistently receive poor feedback.
• Local Support: All aggregator companies must set up physical offices in Maharashtra, making it easier for drivers to access support and resolve grievances.
  

Stricter Oversight for Aggregators

• Licensing and Compliance: Aggregators are now required to obtain proper licenses, adhere to data security protocols under the IT Act, and ensure all driver documents are verified before onboarding.
• Transparent Fare Monitoring: All fare structures and cancellation penalties will be regulated by the Regional Transport Authorities, ensuring transparency and accountability.
• Mandatory Insurance: Insurance coverage for both drivers and passengers is now compulsory, adding another layer of security to every trip.
  

The move comes in response to a surge in complaints about last-minute cancellations, unpredictable surge pricing, and safety issues-especially for women. The Supreme Court and a committee led by retired IAS officer Sudhir Kumar Srivastava recommended these reforms to restore trust and accountability in Maharashtra’s app-based cab sector.

The state transport department will soon issue detailed implementation guidelines. Aggregator apps are expected to update their systems to reflect these new rules, ensuring a smoother, safer, and more reliable commuting experience for everyone in Maharashtra.

With these sweeping changes, Maharashtra is setting a new benchmark for urban mobility-prioritizing passenger safety, driver welfare, and fair business practices across the ride-hailing industry.