State Govt Imposes Penalty for Trip Cancellations by Ola, Uber Drivers and Riders

Both drivers and passengers to be fined for unnecessary cancellations; EV adoption and women’s safety get a push

In a major move aimed at regulating app-based taxi services like Ola and Uber, the Maharashtra government issued a Government Resolution (GR) on Tuesday, outlining a comprehensive aggregator policy. The new policy, which has received cabinet approval, aims to improve transparency, ensure safety, and discourage misuse of the platforms.

To curb the growing trend of arbitrary trip cancellations, the GR mandates penalties for both drivers and passengers:

• Drivers who cancel a trip after accepting it on the app will face a penalty of 10% of the fare or ₹100, whichever is lower. This amount will be credited to the passenger.
• Passengers who cancel without a valid reason will be charged 5% of the fare or ₹50, whichever is lower, which will be credited to the driver.

The policy seeks to create accountability on both sides and ensure smoother operations for all stakeholders.

Fare Regulation and Driver Earnings

The GR sets a clear framework for fare calculation and driver payouts:

• Base fares will be aligned with rates set by the Regional Transport Authority.
• Discounts during low-demand hours are capped at 25% to prevent undercutting metered taxis.
• Peak time fares cannot exceed 1.5x the base rate.
• Minimum trip distance: 3 km.
• Driver share: Aggregators must ensure drivers receive at least 80% of the total fare.

Safety Measures and EV Push

The GR places significant emphasis on safety and sustainability:

• Aggregators must operate only through official apps/websites that comply with state safety norms.
• Real-time GPS tracking, emergency contact integration, and background checks for drivers are mandatory.
• Drivers must undergo training at recognised institutes when renewing their licenses.
• Insurance is to be provided for both drivers and passengers.

As part of the state’s push towards clean energy, aggregators are also encouraged to gradually adopt electric vehicles (EVs) in their fleets.

Special Provisions for Women & Carpooling Rules

The policy also includes special provisions for women’s safety and outlines rules for carpooling. Discount structures during off-peak hours have been clarified, aiming to balance affordability and fair earnings.

The policy was developed following a Supreme Court directive, under the guidance of a committee led by retired IAS officer Sudhirkumar Srivastava. The committee’s recommendations were previously cleared by the state cabinet.