Maharashtra Government Announces New Rules for App-Based Cabs: Fines for Cancellations, EV Push, and Enhanced Safety Measures

Mumbai, May 21 — In a major step towards regulating app-based taxi services like Ola and Uber, the Maharashtra government has issued a comprehensive aggregator policy, aimed at improving passenger safety, promoting electric vehicles (EVs), and discouraging misuse of the platforms. The policy, issued through a Government Resolution (GR) on Tuesday, has received cabinet approval and follows directives from the Supreme Court.

Penalties for Cancellations by Drivers and Passengers

To address rising complaints of arbitrary cancellations, the new policy introduces financial penalties for both drivers and passengers:

• Drivers who cancel a ride after accepting it will be penalized 10% of the fare or ₹100, whichever is lower. The amount will be credited to the passenger.
• Passengers who cancel a ride without valid reason will be charged 5% of the fare or ₹50, whichever is lower. This will be paid to the driver.

Officials stated the move is intended to ensure mutual accountability and improve service reliability.

Fare Structure and Driver Payouts

The GR lays down a uniform fare structure and earnings model:

• Base fares will follow rates prescribed by the Regional Transport Authority.
• Discounts during low-demand hours are capped at 25%, to protect the interests of metered taxis.
• Peak hour fares cannot exceed 1.5 times the base rate.
• The minimum trip distance is set at 3 kilometers.
• Aggregators must ensure that drivers receive at least 80% of the total fare.

Strong Emphasis on Safety and Sustainability

The new policy places significant focus on passenger safety and environmental sustainability:

• Aggregators must operate only through official apps or websites that meet state-prescribed safety standards.
• Vehicles must feature real-time GPS tracking, emergency contact access, and drivers must undergo background verification.
• Drivers will be required to undergo training at government-recognized institutes during license renewals.
• Insurance coverage is mandated for both passengers and drivers.

Additionally, ride-hailing platforms are encouraged to gradually shift towards electric vehicles (EVs) as part of Maharashtra’s clean energy goals.

Women’s Safety and Carpooling Guidelines

The GR includes special provisions to ensure women’s safety during travel and outlines structured rules for carpooling services. Discount policies during off-peak hours have also been clarified to strike a balance between affordability and driver earnings.

Policy Framework and Background

The aggregator policy was drafted based on recommendations from a high-level committee led by retired IAS officer Sudhirkumar Srivastava. The proposals were previously cleared by the state cabinet in line with a Supreme Court directive.

With this regulatory framework in place, the Maharashtra government aims to create a safer, more accountable, and environmentally responsible transport ecosystem for app-based mobility services.