Maharashtra caps app cab surge pricing, imposes fines for cancellations

Mobile app-based cab aggregators must follow fare structures approved by regional transport bodies.
| Photo Credit:
SHIV KUMAR PUSHPAKAR

The Maharashtra Cabinet has approved a policy to regulate mobile app-based cab aggregators. The new aggregator policy caps surge pricing at 1.5 times the base fare and imposes penalties on both drivers and riders for cancelling rides without valid reasons.

The policy is based on the recommendations of a committee chaired by retired IAS officer SK Shrivastava. The committee was appointed by the State government in 2023 and submitted its report in 2024.

Under the policy, mobile app-based cab aggregators must follow fare structures approved by regional transport bodies. The policy allows a maximum fare increase of 50 per cent during peak hours and a maximum reduction of 25 per cent during non-peak hours.

Further, under the policy, cab aggregators are required to verify drivers’ credentials before recruitment, install GPS tracking systems in vehicles, provide emergency contact facilities for passengers, offer insurance coverage for both drivers and passengers, and ensure a swift grievance redressal mechanism.

If a driver employed by a cab aggregator consistently receives poor ratings from passengers, they will be required to undergo compulsory training.

The policy also mandates that aggregators must maintain an office in Maharashtra.

The State transport body will issue directives to cab aggregators for the implementation of the new policy.

Published on April 30, 2025