Maharashtra Puts Down Foot on Ola, Uber, Rapido Cab Surge Pricing, Strict Anti-Cancellation Rules Introduced

In a move aimed at protecting consumers, the Maharashtra government has approved a new policy to regulate app-based cab aggregators like Uber and Ola. The policy, cleared by the state cabinet, caps surge pricing at 1.5 times the base fare and imposes penalties on both drivers and passengers for unjustified ride cancellations.
Key Changes Under the New Policy
The policy, based on recommendations from a committee led by retired IAS officer SK Shrivastava, introduces several strict measures:
Fare Control:Â Surge pricing cannot exceed 50% of the base fare during peak hours, while discounts during non-peak hours are capped at 25%.
Cancellation Penalties:Â Both riders and drivers will face fines for cancelling trips without valid reasons.
Safety & Accountability:Â Aggregators must verify driver credentials, install GPS in vehicles, provide emergency contacts, and offer insurance for drivers and passengers.
Driver Ratings:Â Poorly rated drivers will undergo mandatory training.
Local Presence:Â Companies must maintain an office in Maharashtra for better compliance.
The state transport department will oversee implementation, ensuring aggregators adhere to the approved fare structures. This policy aims to balance affordability for passengers while maintaining fair earnings for drivers.