Maharashtra Govt Proposes Regulatory Framework For Ride-Hailing Platforms

A couple of months after introducing draft rules for bike taxis, the Maharashtra state government has proposed a framework to regulate app-based ride hailing businesses in the state. The guidelines, named Motor Vehicle Aggregator Rules, 2025, would include the following:

• Aggregators must apply for a license via a state portal. The Maharashtra government set the licence fees at INR 10 Lakh for state-wide operations, or INR 2 Lakh, district-wise, while releasing the draft Maharashtra Motor Vehicle Aggregator Rules, 2025 on Friday.
• Standard fares for cabs, auto and passenger businesses would be determined by regional transport authority (RTA) and would be applicable as base fare across all aggregator services. 
• Surge pricing may vary between 25% below to 1.5X above the base fare determined by the RTA. 
• When a booked ride is cancelled, a penalty equivalent to 10% of the total fare not exceeding INR 100 would be imposed and credited to the customer’s app. In case of cancellations without a valid reason, an additional penalty of INR 100 or 5% of the total fare.
• Cab aggregators would be required to reimburse not less than 95% of base fare to the driver.
• In terms of working hours, the rules mandate a maximum of 12-hour login periods and 10-hour rest breaks, with 30-hour induction training that comprises road safety, digital literacy and service standards.
• Passenger insurance of INR 5 Lakh per trip is now optional but required to be offered as part of the service.
• Drivers whose ratings fall below two stars out of five will be temporarily suspended until they undergo retraining.
• The app must include emergency contact or distress features, verification of driver identity, deviation alerts (if driver strays from route) along with ensuring a real-time GPS tracking of vehicles. 

The rules mandate all vehicle aggregators – including cabs, autos, tourist buses, except for bike-taxis, which operate under the Maharashtra Bike Taxi Rules, 2025. The draft is up for public feedback until October 17.

Ride Hailing Business’ Maharashtra History

Cab drivers and gig workers across Maharashtra have been staging intermittent strikes over the past few months, demanding that the state government expedite the rollout of the long-pending Aggregator Cabs Policy 2025. 

The drivers, many of whom work with platforms such as Ola and Uber, are seeking pay parity with traditional taxi drivers and stronger protections under the new framework, which promises a minimum 80% fare share for drivers and fines for unjustified ride cancellations. 

At the same time, the state’s two-wheeler ride-hailing ecosystem has witnessed renewed activity. In September, Maharashtra granted provisional licences to major players like Rapido, Ola, and Uber to restart electric bike-taxi services—previously suspended over regulatory ambiguity. 

These temporary permits, however, come with the condition that companies must apply for permanent licences within a month, under the upcoming EV Bike-Taxi Policy 2025. The move was meant to balance the push for electric mobility with regulatory oversight, but has instead led to confusion among operators and enforcement agencies about what’s officially permitted.