The Maharashtra Cabinet on Tuesday approved the Aggregator Cabs Policy 2025, aimed at regulating the rapidly expanding app-based cab industry and making services like Ola, Uber, and Rapido safer, more transparent, and commuter-friendly.
The policy, mandated by a Supreme Court directive, introduces comprehensive technical, operational, and safety norms for all app-based cab aggregators, particularly those operating in urban areas. It also requires companies to secure valid operating licences and comply with specific cybersecurity and safety regulations.
Key Highlights of the Policy
- Surge Fare Limit: Cab aggregators cannot charge more than 1.5 times the government-regulated base fare, irrespective of time or demand. Discounts are capped at 25%.
- Driver Penalty for Cancellations: Drivers who cancel a ride after confirming it will face a monetary penalty, which will be credited directly to the affected passenger—a major departure from earlier practices where only passengers faced fines.
- App Update Mandate: Aggregators must update their app algorithms to comply with the new surge pricing cap and integrate the penalty system.
Transport Commissioner Vivek Bhimanwar highlighted the need for the fare cap, citing past cases where fares spiked up to five times the base rate, with passengers paying over Rs 1,500 for short distances during peak hours or rain. “This will no longer be allowed,” he said.
Why Was This Policy Needed?
The policy was introduced in response to an increasing number of passenger complaints related to frequent ride cancellations, lack of accountability within the industry, volatile surge pricing, and concerns over passenger safety. The app-based taxi sector had long operated in a regulatory grey area, lacking proper oversight and accountability mechanisms.
Additionally, the Supreme Court instructed all states to draft guidelines for app-based operators to address these concerns. Maharashtra’s policy takes a cue from this instruction and a comprehensively drafted report by a committee headed by retired IAS officer Sudhir Kumar Srivastava.
How It Benefits Passengers
The new policy brings multiple benefits for passengers, aiming to make app-based cab services safer, more transparent, and dependable. One of the key provisions mandates real-time GPS tracking and an emergency contact button in all aggregator apps, significantly enhancing passenger safety during travel.
It has become obligatory for aggregators to arrange for police verification to be completed for drivers, thereby minimising the possibility of unsafe journeys.
For women opting for ride-pooling, only female drivers and co-passengers will be permitted, ensuring comfort and security for women riders.
Fare structures have also been made more transparent and monitored by the regional transport offices. The quality of vehicles is also under scrutiny. Old or poorly maintained cabs will be delisted from the platforms. All these are aimed at making the ride smoother, fairer, and safer for commuters.
Additionally, in a commuter-friendly move, any ride cancellations or denials by drivers will now result in direct penalties paid to the rider, creating a more accountable and passenger-centric system.
Provisions for Aggregators and Drivers
The policy also introduces several protections for drivers, ensuring fairer working conditions:
- At least 80% of the fare must be shared with the driver, reducing dissatisfaction due to aggregator commission cuts.
- Performance monitoring will be based on passenger feedback. Drivers with ratings below 2 out of 5 will be required to attend mandatory training program at approved centres.
- Aggregators must enable in-app emergency features and follow data security norms under the Information Technology Act, 2000.
These reforms aim to improve service quality while motivating drivers to accept more rides and provide better experiences.
Implementation Plan
According to a senior official, the state transport department will soon release a comprehensive rulebook and technical guidelines for implementation. Cab aggregators will have to make technical adjustments on their platforms to incorporate features such as cancellation penalties for drivers and improved safety options for commuters.
The state will also make it mandatory for aggregators to follow cybersecurity guidelines under the Information Technology Act, 2000, to better safeguard user information.
With these sweeping reforms, Maharashtra aims to establish a balanced ecosystem that ensures commuter safety and satisfaction, while improving working conditions and transparency for drivers and aggregator platforms alike.
