1.5x surge fare cap, spot fine on drivers cancelling rides: State aggregator policy

Time of India

29-04-2025

Mumbai: Drivers of aggregator cabs cancelling rides will have to pay a fine, which, in turn, should be immediately deposited in the account of the rider. Besides, aggregators can give maximum 25% discount and limit surge pricing to 1.5 times the normal fare determined by govt. These are part of the Aggregator Cabs Policy, 2025, cleared and approved by the state cabinet Tuesday.
State transport commissioner Vivek Bhimanwar said at present cabs would sometimes charge 3-5 times the normal fare during peak hours. "Cabs will have to maintain a maximum 1.5 times normal fare as surge price throughout the day and night," he said. "Aggregators will be asked to change the algorithm of their apps to include this new surge price feature".
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The new policy also states that "drivers must be paid at least 80% of the fare amount", a senior official said, adding this will ensure that they get good earnings and do not refuse rides. A set of rules regarding the implementation of the policy will be published.
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Cab aggregators
will have to provide an emergency contact facility for passengers, according to the Aggregator Cabs Policy, 2025, cleared and approved by the state cabinet Tuesday. The policy makes background verification of drivers, by police and other agencies, mandatory.
Also, "cabs should maintain the highest safety and trust for women passengers during travel. Only women drivers or women co-passengers are allowed for ride-sharing. The protection of women passengers' privacy should be an important feature of the app".
State transport commissioner Vivek Bhimanwar said that in the existing system, riders would pay a fine if they cancelled bookings. "Now drivers too cannot refuse passengers, even for short distances and they will be fined instantly. The amount will reflect in the rider's account within seconds," he said.
The transport department will issue directions to cab aggregators like Uber and Ola to include
driver cancellation fine
in the app. Aggregator cab company officials were not available for comment.
Following the Supreme Court's directives, a committee led by Sudhir Kumar Srivastava was formed to draft the policy. The policy has been implemented in the state in line with the committee's report and provisions of the Motor Vehicles Act and Rules, an official said. Vehicle owners must comply with various safety measures to ensure passenger safety. For women choosing ride pooling, only women drivers and co-passengers will be allowed for safety reasons.
Bhimanwar said that there are ratings given by riders for every trip, and this indicates whether the driver is good or bad. "If the rating of a driver is less than 2 (on a scale of 5), then the driver will have to compulsorily attend training camp for a few days at a special dedicated training centre," he added. The policy also speaks about welfare of driver's families and medical insurance, among other features.