Maharashtra’s Cab Policy Mandates 10% Fine For Driver Cancellations

The Maharashtra Cabinet has finally come out with a government resolution (GR) on the Aggregator Cabs Policy 2025.

The policy, approved by the Maharashtra Cabinet, aims at boosting electric mobility adoption and manufacturing across the state. It will be effective until 2030 and includes a provision of INR 1,993 Cr over the next five years for its implementation.

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

Under 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, it says. On the other hand, 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.

It also states 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. 

Notably, the fare structure will now be overseen by the regional transport authorities and it will determine the base fare. The policy sets the minimum trip distance at 3 Km.

The state’s policy has also focussed on drivers’ welfare as it states that at least 80% of the total fare would go to the drivers. 

The policy also mandates that drivers must undergo training at recognised institutions during license renewal. Importantly, it has provisions for mandatory insurance coverage for both drivers and passengers.

Besides, aggregators’ platforms either app or website should meet safety standards, including real-time GPS tracking, emergency contact numbers, and driver background verification.

Keeping in mind women passengers safety, the policy also says that female passengers can choose ride-pooling services with only female drivers and co-passengers. 

In line with the Maharashtra Electric Vehicle Policy 2025, aggregators are encouraged to gradually incorporate EVs into their fleets. 

The development comes at a time when riders are consistently highlighting the need for an elaborative policy that ensures their safety and fair pricing. 

Not just riders, drivers have also been demanding good working conditions, fair pay and protection against unfair practices. 

It is pertinent to note that 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. 

Last month, the Maharashtra Cabinet, led by chief minister Devendra Fadnavis approved the new EV policy 2025 which is aimed at boosting electric mobility adoption and manufacturing across the state.

The policy, which will be effective until 2030, includes a provision of INR 1,993 Cr over the next five years for its implementation. It is also focused on clean mobility transition model adoption by giving sops to those switching to EVs till 2030.

The new policy will cover electric two-wheelers, three-wheelers, private four-wheelers, state transport corporation buses, private buses, transport undertakings under civic bodies, with a 10% concession on purchase on its original cost.