By Kavita Mistry 
In a landmark decision, the Maharashtra government on May 21, 2025, issued a government resolution (GR) formalising its long-awaited aggregator policy for app-based cab services like Ola, Uber, and Rapido. The policy, aimed at bringing accountability and consistency to the booming ride-hailing sector, includes strict guidelines on pricing, cancellations, service quality, and driver training.
New Cancellation Penalties: No More Last-Minute Backouts
To curb last-minute cancellations and improve commuter trust:
- Drivers cancelling after accepting a ride will be penalised ₹100 or 10% of the fare, whichever is lower. This will be credited to the rider.
- Passengers cancelling without a valid reason must pay ₹50 or 5% of the fare, whichever is lower. This will be passed on to the driver.
This is intended to discourage casual cancellations and ensure reliability in service delivery.
Surge Pricing & Discounts Get Capped
The policy also seeks to protect customers from exploitative pricing:
- Base fare must match rates set by the Regional Transport Authority (RTA) for regular taxis and autos.
- Surge pricing capped at 1.5x the base fare during peak hours.
- Discounts during low demand limited to 25% of the base fare.
- A minimum fare will apply for rides under 3 km.
- Drivers are entitled to at least 80% of the fare paid by riders.
App Standards, Driver Training & Grievance Redressal Now Mandatory
To ensure a safer and more standardised experience, the policy mandates:
- All bookings to be done via a dedicated mobile app or website meeting state safety and tech standards.
- A grievance redressal system to handle complaints from both riders and drivers effectively.
- Mandatory training for drivers via authorised institutions, enhancing service quality and safety awareness.
What It Means for Commuters and Drivers
For commuters, expect fairer fares, fewer cancellations, and better app-based service quality.
For drivers, while stricter rules apply, the policy ensures better earning transparency and passenger accountability.
Final Thoughts
This aggregator policy could set a precedent for other states grappling with the rapid expansion of app-based transport. With its focus on transparency, fairness, and safety, Maharashtra aims to balance tech-enabled innovation with commuter rights and driver welfare.