Surge fare cap at 1.5x, driver penalty for cancelling rides: How Maharashtra's Aggregator Cabs Policy 2025 is a win for commuters
The Maharashtra Cabinet Tuesday approved the Aggregator Cabs Policy 2025. The Aggregator Cabs Policy 2025, cleared by the state Cabinet after a Supreme Court directive, seeks to make app cab operations safer, more transparent and commuter-friendly through regulations for cab-providing apps such as Ola, Uber, and Rapido.
It also mandates aggregators to obtain proper licences and adhere to various technical, safety and operating norms. Such norms include GPS tracking, emergency contact features in the app, background checks for the driver, cybersecurity requirements, and improved grievance redressal. The policy applies to all app-based aggregators, especially those in urban settings.
What was the need for this policy?
The demand for the policy arose from an increase in passenger complaints and the absence of regulation within the industry. Users were often subjected to last-minute cancellations by drivers, volatile surge prices and safety issues, particularly for women commuters.
Furthermore, there was a lack of accountability, including the absence of a driver refusal penalty or reporting of poor cab conditions. The Supreme Court instructed 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 will it benefit the customers or cab users?
For cab users, the policy introduces a range of changes that promise a safer and more dependable ride experience. Mandatory emergency contact features and live GPS tracking will enhance passenger safety. It has become obligatory for aggregators to arrange for police verification to be completed for drivers, thereby minimising the possibility of unsafe journeys.
To safeguard women, the policy provides a ride-sharing option with only women drivers and co-passengers if the passenger desires.
Fare structures have also been made more transparent and monitored by the regional transport offices. Surge pricing has been capped at 1.5 times the base fare, and discounts of up to 25 per cent can be given during off-peak hours. Drivers who cancel rides or deny short trips will be penalised, with the penalty amount directly credited to the rider's account. Cabs in poor physical condition will also be delisted from the platforms. All these are aimed at making the ride smoother, fairer, and safer for commuters.
What is in it for aggregator companies and drivers?
Although the policy sets stricter rules, it also provides a clear system that enables aggregators to expand more responsibly. By presenting a licensed and legally accepted pathway, companies can conduct business with clarity and gain public trust.
For drivers, the policy guarantees that they will receive at least 80 per cent of the fare paid per ride, meaning improved earnings. There is also provision for training and development. Drivers with consistently poor ratings will be required to undergo refresher training. The welfare of drivers and their families has also been taken into consideration, with medical insurance and other benefits to be included under aggregator obligations.
Additionally, the policy clearly defines the responsibilities of aggregators. They will have to establish a physical office within Maharashtra, fit GPS devices in all cabs, and thoroughly check driver documents before employing. Aggregators will also need to provide training to drivers at every time of licence renewal, provide insurance to passengers and drivers, set up an efficient grievance redressal system, and adhere strictly to fare mechanisms established by the regional transport authorities.
How will the policy be implemented?
According to a senior official, the state transport department will shortly issue comprehensive guidelines to cab operators on how to enforce these regulations and a standalone rulebook will be made available 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. The policy is likely to make app-based commuting in the state more secure, equitable, and dependable once it is fully rolled out.
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