After Bike Taxi, Bus Aggregators Run Under Maharashtra Scanner

Ride-hailing platforms like Uber are once again in the crosshairs of the Maharashtra government. This time, it is for the bus aggregator service.

A week after Maharashtra transport minister Pratap Sarnaik posed as a rider and found lapses in bike taxi ban in Mumbai, he now reportedly announced a crackdown on Uber Shuttle and other aggregator bus operators for not securing a licence for the service from the government. 

The Times of India reported that the minister said that strict actions will also be taken against senior RTO officials responsible for “not taking action” against bike taxis and aggregator buses that are illegally operating in the city.

Besides Uber Shuttle, aggregator bus operator Cityflo also came under the state scanner for not obtaining the licence. “When I enquired with RTO officials, they said they have served notices to the bus aggregators and are awaiting response. But they should conduct raids and penalise them or stop the services,” Sarnaik said.

He also underscored the need for a policy for bus aggregators for commuters’ interest.  “We need to formulate a policy for bus aggregators if it is of benefit to a larger section of commuters. But allowing illegal operations of app-based buses should be halted.” 

The TOI cited sources to report that Uber Shuttle services may be halted in the aftermath of the announcement and it might also disappear from the app. 

Inc42 has reached out to Uber for comments on the development. The copy will be updated on receiving the response. 

In another report on Thursday, the daily said that many aggregator-controlled buses could go off roads in fear of RTO action. 

In Mumbai, bus aggregators like Uber Shuttle, Cityflo and others operate more than 450 buses, it said. 

Last week, the transport minister caught Rapido flouting the bike taxi ban in Maharashtra. On July 3, Sarnaik booked a bike taxi on Rapido in Mumbai under a different name to verify a senior official’s claim that the app and illegal bike taxi services are non-operational.

Contrary to the claim, a bike taxi driver swiftly reached the spot to pick up the minister from the pick-up destination. On his arrival, the minister counselled the driver about the illegal service, however no action was taken against him. 

Bike Taxi Operations Under State Govt Lens

The bike taxi row started in January 2023 when Maharashtra banned bike taxis and directed the platforms to apply for a licence to operate in the state.

Subsequently, Rapido approached the local transport department to acquire a licence to offer bike taxi services in the state but was denied a permission. After that, the ride-hailing platform moved the Bombay High Court, challenging the notification after the department refused the permit to operate as a bike taxi aggregator.

The HC also rejected the plea by the aggregator and directed the company to suspend its bike taxi services after discovering that Rapido was operating without a licence. 

In April, the Maharashtra Cabinet approved a proposal to allow bike taxis to operate in the state. Sarnaik said that only electric bike taxis will be allowed to ply on the roads under the new policy which aims to promote EVs.

After the bike taxi incident on July 3, Maharashtra government issued a gazette notification formalising bike taxi operations rules in the state. The notification Maharashtra Bike Taxi Rules, 2025 mandates aggregator platforms to get a valid licence before operating bike-taxi services.

Besides, earlier this month, the Centre also revised the ‘Motor Vehicles Aggregator Guidelines 2020’ to allow operations of bike taxis.

The guidelines noted that bike taxis result in reduction in traffic congestion and vehicular pollution, along with “providing inter alia affordable passenger mobility, hyperlocal delivery, creating livelihood opportunities”.

Maharashtra’s Regulations For Cab Aggregators 

In May, the state announced a government resolution (GR) on the Aggregator Cabs Policy 2025.

Under the policy, the aggregators must be registered under the Companies Act, 1956 or 2013, the Cooperative Societies Act, 1912, or Limited Liability Partnership Act, 2008. The resolution also mandates cab aggregators running app-based taxis to have a physical office in Maharashtra. 

It also brought rules for ride cancellations – if the driver cancels a ride, then INR 100 or 10% (whatever is lesser) of the fare would be credited in the user’s account and if a passenger cancels a trip without a valid reason, a penalty of 5% of the fare or INR 50 (whichever is lower) will be imposed and credited to the driver’s account.

The resolution also stated that the cab aggregator cannot charge more than 1.5 times higher than the standard fee in the name of surge fee. 

To ensure fair competition for metered taxis, the cab companies can not offer discounts more than 25% during non-peak traffic times, it noted. 

The state government’s efforts to regularise ride hailing services are centred around women passengers safety, riders’ urge for fair pricing and drivers’ demand for good working conditions.