No More Free Cancellations, Maharashtra To Fine Drivers Rs 100 For Every Ride Dropped
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Not just drivers, in case a rider cancels a booked trip without justification, a fine of 5 per cent of the fare—capped at Rs 50—will be levied
To ensure regulatory compliance, only officially registered companies will be allowed to operate app-based taxi services. (X)
The Maharashtra government has rolled out a new policy to tackle the issue of arbitrary ride cancellations by app-based taxi drivers.
Under the revised ‘Aggregator Guidelines’, any driver who cancels a ride without a valid reason will face a penalty amounting to 10 per cent of the ride fare, with a maximum cap of Rs 100. This move aims to bring greater discipline and reliability to ride-hailing services across the state.
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Passengers aren’t exempt from accountability either. If a rider cancels a booked trip without justification, a fine of 5 per cent of the fare—capped at Rs 50—will be levied. The goal is to create a balanced and fair system that discourages last-minute cancellations on both sides, ensuring smoother operations and improved trust between users and service providers.
These guidelines are part of a broader national framework initiated by the Central Ministry of Road Transport and Highways, which issued a directive on November 26, 2020, mandating every state to establish individual rules for app-based transport aggregators. Maharashtra was among the first to act, formally notifying its guidelines, which came into effect in February 2024, following preparatory work since October 2023.
A key highlight of Maharashtra’s policy is the strong focus on women’s safety in shared mobility services. For ride-sharing options like carpooling, companies are now required to deploy women drivers specifically for women passengers. This measure seeks to provide a more secure and comfortable travel experience for female commuters.
Beyond penalties and gender-sensitive provisions, the new rules lay down several mandatory safety and service standards. These include the integration of an emergency contact option within the app interface, compulsory background verification and character assessment of drivers, and mandatory insurance coverage for both passengers and drivers.
Additionally, all drivers must undergo safety-focused training, with special emphasis on professional conduct and customer service.
To ensure regulatory compliance, only officially registered companies will be allowed to operate app-based taxi services. These companies must follow cooperative structures and maintain full data transparency with the transport department. The new guidelines also require regular reporting and cooperation with authorities to enhance service standards.
Overall, the policy aims to streamline app-based transportation in Maharashtra by addressing persistent issues such as unpredictable cancellations, safety concerns, and regulatory grey areas. With these comprehensive measures in place, the state hopes to set a benchmark for others to follow. As more states begin implementing their own aggregator rules, Maharashtra’s proactive approach is likely to serve as a reference model for safer and more reliable app-based mobility across the country.
- First Published:
May 21, 2025, 09:30 IST
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