Booked a Ride and Cancelled? You May Be Fined: Maharashtra’s New Policy for Ola, Uber

Mumbai/Pune, 21st May 2025: The Maharashtra government on Tuesday issued a long-awaited government resolution (GR) formalising the aggregator policy for app-based cab services like Ola and Uber. The policy outlines key regulations on fare structures, service standards, and introduces penalties for unjustified ride cancellations by both drivers and passengers.

The move comes after the cabinet gave its approval to the framework, aimed at streamlining operations of digital ride-hailing platforms and ensuring accountability.
“To minimise last-minute trip cancellations and promote reliable service for commuters, financial penalties will now apply to both drivers and riders when a booking is cancelled without valid reasons,” the GR stated.

According to the policy, if a driver cancels a ride after accepting it through the app, they will be penalised 10% of the estimated fare or ₹100, whichever is lower. This amount will be credited to the passenger’s account. Conversely, if a passenger cancels a booking without justification, they will be charged 5% of the total fare or ₹50, whichever is lower, which will be passed on to the driver.

Fare Structure and Surge Pricing Regulated
The new rules also bring clarity to fare regulation, balancing market flexibility with consumer protection.
The base fare for aggregator cabs will align with the tariffs prescribed by the Regional Transport Authority (RTA) for auto-rickshaws and regular taxis. The policy caps surge pricing at 1.5 times the base fare during peak hours. Meanwhile, during periods of low demand, discounts cannot exceed 25% of the standard fare.
Additionally, a minimum fare will apply to rides below three kilometres, and drivers must receive at least 80% of the fare paid by the customer.

App Standards, Grievance Redressal, and Driver Training Mandated
The GR also emphasizes the need for reliable digital infrastructure and passenger safety.
“All services must be operated through a dedicated mobile app or website that complies with state safety and operational standards,” the resolution noted. Aggregators must also ensure a functional grievance redressal system to address complaints raised by riders or drivers efficiently.
To improve service quality and safety, the policy mandates that all drivers working with aggregator platforms undergo formal training through authorised institutions.