Uber, Ola to pay customers if driver cancels the ride in Maharashtra

In a landmark move under the newly introduced Aggregator Cabs Policy 2025, the Maharashtra government has made it mandatory for ride-hailing platforms like Uber, Ola, and Rapido to compensate passengers if a driver cancels or refuses a booked ride.

This rider-friendly provision aims to curb a long-standing issue where drivers cancel trips arbitrarily—often causing inconvenience, delays, or financial loss to passengers. Effective immediately, app-based cab aggregators will be held accountable for such cancellations and must credit compensation directly to the affected customer’s account.

The decision is part of a broader push by the Maharashtra government to bring transparency, fairness, and accountability to the app-cab sector. Until now, there was no penalty or redressal mechanism in place for ride cancellations initiated by drivers. Passengers often had to face the brunt of cancellations with little to no support.

By legally mandating financial penalties for driver-initiated cancellations, the policy ensures that cab aggregators take responsibility for customer experience and enforce discipline among their driver partners. The exact amount of compensation is expected to be notified in the implementation guidelines soon to be released by the Transport Department.

This is a significant win for daily commuters and app users across cities like Mumbai, Pune, Nagpur, and Nashik, where ride cancellations have become a routine frustration.

With the Aggregator Cabs Policy 2025 now in effect, Maharashtra becomes one of the first states in India to put such a customer-first rule into law—setting a precedent for other states to follow.