Maharashtra Aggregator Cabs Policy: Now, Drivers Will Be Fined For Cancelling Rides

The Aggregator Cabs Policy 2025, recently cleared and approved by the Maharashtra cabinet, mandates that drivers cancelling rides will now have to pay a fine, which in turn should be immediately credited to the rider’s account.

According to the policy, 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, said a report by The Financial Express.

The new policy also states that the cab company cannot charge more than 1.5 times higher than the standard fee. In terms of discounts, the cab companies can offer discounts up to 25% during non-peak traffic times. The fare structure will now be overseen by the regional transport authorities, the report said. 

To ensure users’ safety, the policy mandates installation of a GPS tracking system in all the cabs and all drivers have to undergo a police verification. For the safety of women, the customer can opt for an all-women car pool and a female driver. 

The policy also laid out provisions for the benefit of cab drivers and to boost their earnings at least 80% of the rider fare would go to the drivers, the report added. 

Further, the cab aggregators will be required to provide medical insurance benefits to the drivers and their families. 

It is pertinent to note that the cab aggregators will now also have to set up offices in Maharashtra.

The need for an elaborative policy for the benefit of users was underlined by customers’ complaints regarding their safety and surge pricing and cancellation charges. Besides users, drivers have also been demanding good working conditions, fair pay and protection against unfair practices. 

The development comes at a time when the Maharashtra cabinet approved allowing bike taxis to operate in the state last month. The state’s Transport minister Pratap Sarnaik said that promoting EV two wheeler will benefit about 6,000 riders in Mumbai and nearly 10,000 riders in the entirety of the Mumbai Metropolitan Region. 

He also announced a financial assistance of INR 10,000 for the children of auto and taxi drivers to purchase electric bike taxis.

It is to be noted that he Maharashtra government in January 2023 banned bike taxis and directed ride-hailing platforms to apply for a licence to operate in the state. Thereafter, bike taxi platform Rapido moved the Bombay High Court (HC) and the Supreme Court (SC), challenging the ban. 

While Maharashtra allowed two wheeler cabs, the state of Karnataka had put a halt on bike taxi services till July 15 and currently has no plans to review its order passed in March prohibiting bike taxi operations. 

In Karnataka, the bike taxi suspension will lead millions of commuters and lakhs of bike taxi drivers and aggregators like Ola, Uber and Rapido bearing the brunt. 

These aggregators have filed a petition challenging the Karnataka state government’s decision, following which the HC granted the extension.

In the state, there have been several instances of a physical standoff between the auto drivers and bike drivers in the last few years, with many videos of abusing bike taxi drivers going viral.

The Bike Taxi Welfare Association had filed a petition in the High Court, highlighting reports of clashes between auto drivers and bike taxi operators in the city. In response to this petition, the High Court directed the state government to ensure the protection of bike taxi operations in Karnataka.