Maharashtra Govt Rolls Out New Cab Policy 2025: Caps Surge Pricing, Fines Cancellations, Boosts Commuter Safety
Maharashtra Govt Rolls Out New Cab Policy 2025: Caps Surge Pricing, Fines Cancellations, Boosts Commuter Safety
Frequent users of app-based cab services in Maharashtra can now expect a more structured and commuter-friendly experience. The state government has approved a comprehensive Cab Aggregator Policy to ensure transparent pricing, accountability, and improved service standards.
According to the state transport department, the policy will cap surge pricing to a maximum of 1.5 times the base fare during high-demand periods like festivals, holidays, and peak hours. This is aimed at protecting commuters from steep fare hikes.
To discourage arbitrary ride cancellations, the policy introduces fines: if a driver cancels a ride without valid reason, they will be fined 10% of the fare or Rs. 100 (whichever is lower), which will be credited to the passenger’s wallet. Similarly, if a passenger cancels without justification, they’ll be charged 5% of the fare or Rs. 50, benefiting the driver.
The policy also limits discounts during off-peak hours to a maximum of 25% below the base fare. It ensures drivers receive at least 80% of the total fare, with a minimum fare applicable for the first 3 kilometers.
Cab aggregators will be required to set up efficient complaint redressal systems for both passengers and drivers. Real-time GPS tracking, emergency features through the app, mandatory driver training, background checks, and insurance coverage for all parties will also become mandatory under this policy.
A transport department official stated, “The cabinet has approved the policy, and draft rules will be published soon. Public feedback will be invited before final implementation.”
This move aligns with the Motor Vehicle Aggregator Guidelines issued by the Union Ministry of Road Transport and Highways, and is framed under Section 93 of the Motor Vehicles Act, 1988. Once rolled out, the policy is expected to bring much-needed structure, safety, and fairness to Maharashtra’s app-based transport system.
