Cab Aggregators to pay penalty for cancellations by Drivers under New Maharashtra Policy

Mumbai, India (Urban Transport News): In a landmark move aimed at protecting commuter rights and improving accountability in the ride-hailing sector, the Maharashtra government has introduced the Aggregator Cabs Policy 2025, making it mandatory for platforms like Ola, Uber, and other cab aggregators to compensate passengers when drivers cancel confirmed rides.

The new policy marks a significant shift from existing norms, where only passengers were penalised for cancellations while drivers often faced no consequences. Under the revised rules, passengers will now receive a penalty amount if the driver cancels a ride after accepting it, making the system more balanced and commuter-friendly.

Key Features of Maharashtra's Aggregator Cabs Policy 2025

1. Compensation for Ride Cancellations

• If a driver cancels a confirmed ride, the customer will receive a penalty payment credited directly to their account.

• The amount will be ₹100 or 10% of the total fare, whichever is lower.

• If a passenger cancels the ride after booking, a penalty of ₹50 or 50% of the fare, whichever is lesser, will go to the driver’s account.

This policy discourages indiscriminate cancellations and aims to bring fairness and responsibility to both parties involved.

2. Fare Regulation and Surge Cap

• Cab aggregators are now prohibited from charging more than 1.5 times the base fare, putting a cap on surge pricing.

• Companies can offer discounts of up to 25% during non-peak hours, encouraging ridership in off-traffic times.

• All fare structures will now be subject to inspection and approval by regional transport authorities, ensuring transparency and consistency across the sector.

3. Safety Measures Strengthened

• All aggregator vehicles must now be fitted with GPS tracking systems to ensure route transparency and passenger safety.

• Police verification of all drivers is mandatory under the new policy.

• The government has also introduced women-focused safety features, including:

  • The option for female passengers to book women-only carpools.

  • The ability to choose female drivers, if preferred.

A Win for Commuters and a Push for Accountability

This sweeping reform in Maharashtra’s urban mobility framework reflects the government's focus on commuter convenience, driver responsibility, and safer ride-hailing practices.

Previously, passengers bore the brunt of last-minute cancellations, leading to delays, inconvenience, and a lack of confidence in ride-hailing services. With the Aggregator Cabs Policy 2025, the balance of responsibility has shifted to ensure fairness and reliability, potentially setting a precedent for similar reforms across other states in India.