Maharashtra Approves Cab Aggregator Policy, Caps Surge Pricing, Imposes Fines For Cancellations | Representative Image/ Pexels
Frequent users of app-based cab services in Maharashtra can look forward to a more commuter-friendly experience, as the state government has recently approved a new Cab Aggregator Policy aimed at ensuring fairer pricing and greater accountability from ride-hailing platforms.
According to the state transport department, after implementation, the new policy will place a cap on surge pricing, limiting fare hikes to no more than 1.5 times the base fare during peak demand periods such as festivals, holidays, and rush hours. This move is intended to protect passengers from excessive fare increases during high-demand times.
“In addition to regulating fares, the policy imposes financial penalties to discourage unjustified ride cancellations,” said a senior official from the state transport department. “If a driver cancels a ride without a valid reason after accepting it, they will be fined 10% of the fare or Rs. 100, whichever is lower. This amount will be credited to the passenger’s wallet. Likewise, passengers who cancel without a valid reason will be charged 5% of the fare or Rs. 50, whichever is lower, with the amount going to the driver’s wallet.”
The policy also introduces a cap on discounts during low-demand hours, limiting them to a maximum of 25% below the base fare. Drivers must receive at least 80% of the total fare, and the minimum fare will apply for distances of up to 3 kilometers. In addition, cab platforms must establish an effective system for addressing complaints from both passengers and drivers.
“The policy has been approved by the cabinet, and the draft rules will be published shortly,” the official added. “Following this, the public will be invited to provide feedback. After reviewing suggestions and objections, a final notification will be issued, and the policy will be implemented across the state.”
The state transport department emphasized that the policy is part of a larger effort to regulate app-based transport services through greater transparency, legal compliance, and a strong focus on commuter safety. It is in alignment with the Motor Vehicle Aggregator Guidelines issued by the Union Ministry of Road Transport and Highways and is framed under Section 93 of the Motor Vehicles Act, 1988.
Under the new policy, all vehicles must be equipped with real-time GPS tracking and emergency contact features through the mobile app. Additionally, certified training and background verification will be mandatory for drivers. Insurance coverage will also be required for both passengers and drivers.
“Once implemented, the policy is expected to significantly improve Maharashtra’s ride-hailing ecosystem by offering structured pricing, better accountability, and a fairer deal for both commuters and drivers” further added official.
