No More Price Surprises: New Cab Policy Puts Brake on Surge Fare Exploitation

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Mumbai: In a move set to redefine the app-based taxi experience in Maharashtra, the state government on May 1 officially launched the Aggregator Cabs Policy 2025, a comprehensive regulatory framework aimed at ride-hailing giants such as Ola, Uber, and Rapido.

The new policy—formulated following Supreme Court directives and recommendations from a high-level committee chaired by retired IAS officer Sudhir Kumar Srivastava—seeks to address a rising tide of passenger complaints around ride cancellations, fare manipulation, and women’s safety, issues that have plagued app-based transport in recent years.

What’s New in the Policy?

  • Licensing Mandatory: All aggregator platforms must now register with the state and obtain licenses to operate legally.
  • GPS and Emergency Tools: Real-time GPS tracking, emergency contact buttons, and police-verified driver backgrounds are now mandatory.
  • Fair Share for Drivers: Drivers will earn 80% of each fare, boosting income transparency.
  • Cancellations and Penalties: If a driver cancels a ride, the passenger won’t bear the penalty—a key win for consumers.
  • Cap on Surge Pricing: Fare surges are capped at 1.5x the base rate to control exploitation during peak hours.
  • Women’s Safety First: Introduction of women-only ride options, including female drivers and shared rides for women.
  • Local Presence and Training: Aggregators must set up local offices, conduct driver training, and follow cybersecurity norms to protect rider data.

The government clarified that these reforms are intended to bring the app-based transport sector out of a “regulatory grey zone” and into a system that prioritizes passenger rights, driver welfare, and data security.

Why the Policy Matters

With Maharashtra’s urban centers relying increasingly on app-based mobility, the Aggregator Cabs Policy 2025 fills a critical gap in oversight and safety. It addresses long-standing issues that previous laws failed to cover—especially concerning unregulated pricing algorithms and insufficient safety mechanisms.

While some aggregators may express concern over operational changes, the public reaction has largely been positive, especially among frequent commuters and women passengers.

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