Maharashtra taxi policy caps surge pricing, new cancellation fees

What key benefits does the Aggregator Cabs Policy 2025 offer that you should understand? Find out.

Ola cab
In addition to the distressing situation, the woman found that the SOS button on the Ola app failed to work. (Image: Twitter)

The Maharashtra cabinet has approved the new Aggregator Cabs Policy 2025, which offers additional provisions for the passengers. Based on the recommendations from the Supreme Court, the functions of app-based taxi aggregators like Uber and Ola are transparent to the customer. The new policy highlights a valid driving license, surge pricing, new ride cancellations, and a driver background verification process.

Cancellation Charges 

This has been a bane for anyone who has used app-based cab services. The usual practice would be that, for whatever reason, the driver would cancel the ride, and the customer would end up getting penalised for this. This was a universal problem irrespective of the company. Now the policy clearly states that if the driver cancels the rider, then either Rs 100 or 10 per cent of the fare, whichever is lesser, will be credited to the customer’s account. In case the customer cancels the ride, then 50 per cent or Rs 50, whichever is lesser, will be deposited in the driver’s account. 

Surge Pricing Cap

This has been another major issue that has now been addressed. The new policy clearly 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.

Safer Ride 

It is mandatory for all cabs to install a GPS tracking system, 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.  

Aggregators and Drivers 

The new policy provides better provisions for drivers, like they will earn 80% of the rider fare, while the aggregators will have to offer training sessions if a driver has regularly received poor ratings and additional benefits for the driver and the family, like medical insurance. The aggregators will have to set up an on-ground office in Maharashtra.

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This article was first uploaded on May one, twenty twenty-five, at seven minutes past twelve in the night.
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