Latest news with #AggregatorCabsPolicy2025
NDTV
07-05-2025
- Business
- NDTV
Auto-Rickshaw, Cabs To Attract Fines For Cancelling Rides In Maharashtra
The Maharashtra government has introduced the Aggregator Cabs Policy 2025 to regulate app-based ride services. One important rule in this policy is that auto-rickshaw and cab drivers will face fines if they cancel rides without a good reason. This aims to solve ongoing complaints from commuters about ride cancellations and safety. The fines can be as high as five times the normal amount for cancellations of rides going to hospitals, airports, or railway stations. Currently, Maharashtra has 14 cab services, including Ola, Uber, Meru, InDrive, and BlaBla. About the Cancellation Policy The new policy states that drivers who cancel a ride or refuse short-distance trips will be fined Rs 100 or 10% of the fare, whichever is less. This fine will go directly to the passenger's account. If a commuter cancels a ride, they will pay Rs 50 or 50% of the fare, whichever is lower, to the driver. Also Read: According to the new policy, aggregators must keep their profits between 5% and 8%, down from a maximum of 28%. Drivers are guaranteed to get at least 80% of the fare for each ride. The policy also ensures that drivers and their families have access to training, medical insurance, and other benefits. The policy limits surge pricing to 1.5 times the regular fare and allows discounts of up to 25% during off-peak hours. Companies must also have the right licenses and follow safety rules, such as GPS tracking, emergency contact options, and background checks for drivers. These steps are designed to improve safety for both travellers and drivers, especially for female commuters. The Aggregator Cabs Policy 2025 aims to make app-based transportation services in Maharashtra more reliable and safer. By making drivers responsible for cancellations and introducing strict safety rules, the policy intends to build commuter trust and improve overall satisfaction.
Mint
06-05-2025
- Business
- Mint
Who pays for cancelled rides? Maharashtra's new cab rules stir industry debate
Maharashtra's new policy for cab aggregators has raised concerns across the ride-hailing ecosystem, particularly over a provision for penalties if a driver cancels a booking. While the policy introduces a penalty of ₹ 100 or 10% of the fare (whichever is lower) to be credited to the rider, it is unclear whether the cost will be borne by the driver or the cab aggregator. In addition to cancellation charges, two other provisions are also expected to spark further debate: the introduction of mandatory meter pricing and a surge pricing cap of 1.5 times the base fare, which could limit driver incentives during high-demand periods such as festivals, peak hours, or adverse weather conditions. The Maharashtra government officially rolled out the Aggregator Cabs Policy 2025 on 1 May, aiming to regulate app-based cab services. The policy was developed following Supreme Court directives urging states to regulate the sector. The rules are expected to be notified later this week, Maharashtra's state officials said. Here's an overview of the provisions that have raised concern among industry players. Industry executives from the ride-hailing industry told Mint that the policy imposes an undue compliance burden on platforms that act purely as intermediaries. Since aggregators do not own vehicle fleets, they argue they lack the control necessary to manage driver behaviour around cancellations. 'Usually, it's the driver cancelling the ride—the platform has no incentive to do that. Aggregators don't own vehicles, so they cannot enforce the kind of control fleet operators can," said an executive from the industry close to the matter. Driver-led unions have also raised concerns that the cancellation clause could shift the financial burden onto drivers. 'Cancellation will likely get pushed onto drivers, further making it difficult for them to sustain their livelihood," said Shaik Salauddin, national general secretary of the Indian Federation of App-Based Transport Workers (IFAT). However, some experts said the policy introduces accountability and may be a step toward greater professionalism in the sector. 'These penalties are expected to go to the aggregators that should further pass on to the drivers, leading to more professionalism in the game. The ultimate beneficiary of this discipline-based structure is going to be the end consumer, which is a welcome move by the government," said Amit Kaushik, managing director at Urban Science, an automotive consultancy firm. Still, concerns persist about implementation. Executives noted that drivers often reject rides informally, forcing users to cancel their trip. 'Drivers can game the system—delay pickups until the customer cancels, for instance. And if I'm a driver facing cancellation penalties, I'd rather switch to a platform that doesn't charge me," said an executive representing the companies, speaking on condition of anonymity. 'Even models like Namma Yatri and Sahakar Taxi should fall under the same compliance lens. You can't regulate one segment while letting others operate freely," they added. While Mint's queries to Uber and Ola did not elicit a response, Rapido said it may remain partly unscathed. Rapido functions as a software-as-a-service (SaaS) provider, charging drivers a one-time subscription fee and taking no commission from fares. As a result, it considers itself a technology provider, not a traditional aggregator. It operates on a model where no commissions are charged from drivers, and 100% of the fare goes directly to the driver's account, 'with no intervention or settlement on the platform," a company spokesperson said. Instead, it charges drivers a one-time software subscription fee, addressing the 'dissatisfaction with high commissions charged by other platforms," the company said. 'This is akin to digitisation of offline negotiation as to an app based negotiation," the company clarified, adding that, "we don't face the problem of ride cancellation from the drivers on Rapido." The model mirrors those of other platforms such as Namma Yatri and inDrive, which also bypass the conventional aggregator structure. Also Read: Uber's lifeline off the table for BluSmart as EV depreciation becomes key contention Industry executives fear that despite the central government's Motor Vehicle Aggregators Guidelines, 2020, state-specific regulations will require aggregators to constantly adjust their software, resulting in a compliance nightmare and increased costs. 'Jurisdictionally, it will be a software nightmare. Each state-specific tweak increases the cost of compliance, which eventually makes the business model unviable. Compliance shouldn't increase to an extent where business models begin to look like charity," said an executive from the ride-hailing industry. Industry players also pointed out that the current regulatory environment may incentivise both drivers and platforms to shift toward Saas-based formats, which are largely exempt from such regulation. 'You now have models like Namma Yatri, Sahakar Taxi, and Rapido. If these continue to grow, drivers will naturally be drawn to them. The question is: Are we unintentionally pushing all aggregators to adopt this format just to avoid compliance?" said another industry official. Also Read: Rapido takes on Ola, Uber with 'low-cost' guarantee airport cab service The provision on surge cap of 1.5 times the base fare which could curb pricing flexibility during high-demand periods is also likely to backfire, experts said. 'Surge isn't just about profits—it's also how you incentivize drivers to respond to demand spikes. If the government itself uses surge pricing in other services, clearly the model has merit," said another executive, representing the companies, speaking on condition of anonymity. Surge pricing, also known as dynamic fare pricing, is implemented by the state-owned Indian Railway Catering and Tourism Corporation (IRCTC) for train tickets during peak times. In regulated industries like airlines, this pricing strategy helps manage demand and optimize service availability. The mandatory meter pricing may not be a feasible model, industry executives said, noting that customers switched to alternative platforms in the first place because traditional models were unreliable. 'Customers jumped to these platforms for two reasons: easier access to cabs and more predictable pricing. While meters are intended to make fares transparent, the lack of other technological innovations (like app-based fare estimates) still leaves consumers with an uncomfortable feeling of fare unpredictability and service availability," said an executive from the ride-hailing industry. Maharashtra state officials maintained that this policy is essential to ensure fare transparency and curb exploitation of riders. They emphasised that these new rules aim to strike a balance between consumer protection and driver welfare, improving service reliability and safety in Maharashtra's fast-growing urban mobility sector. As of now, there is no publicly announced formal feedback window for stakeholders or the public to submit comments on the policy. However, the state transport department has indicated that operational guidelines are being finalised and will be communicated to all stakeholders soon. While Maharashtra's new policy attempts to bring greater accountability and protect consumer interests, the execution will be closely watched, particularly for its impact on driver earnings, platform viability, and the broader future of app-based mobility in India. Also Read | The curious case of Ola's scooter 'sales' without invoices
India Today
02-05-2025
- Business
- India Today
Get paid when your ride cancels, Maharashtra's new cab rule is a win. Key details
The Maharashtra cabinet has given the green light to the Aggregator Cabs Policy 2025 in a bid to control app-based taxi services in the state. Exorbitant surge pricing during peak hours has also been capped to one and a half times the base discounts of up to 25% can be slashed during off-peak periods while allowing fare predictability at the same Regional Transport Authorities will manage and ensure compliance with these fare structures. The new policy marks yet another step towards a controlled environment and a ride-hailing market balance in the state. As with any policy, there are set fare cancellations, safety protocols, driver welfare, and strict policies in place which the policy seeks to level out for the riders, drivers, and the IN TERMS OF REDEFINING CANCELLATION PUNISHMENTIn terms of balanced policies regarding cancellations, in the event that a driver cancels a ride, the passenger shall be compensated a sum of one hundred rupees or ten percent of the fare, whichever value is the same regard, if a passenger cancels a ride, they should forfeit a sum of fifty rupees or half the fare to the driver's account, whichever value is policy seeks to prohibit arbitrary cancellations from both ends of the spectrum and encourages responsibility from both drivers and TERMS OF SAFETY AND DRIVER LOAD MITIGATIONTo improve passenger security, the policy requires that GPS trackers are placed in all cabs and that drivers must undergo a police background strengthen the appeal of women passengers, the policy acknowledges diversity by permitting women only to carpool as well as drivers.A driver's point of view is that they get to keep eighty percent of the fare while the aggregators get twenty percent of policy also states that the aggregators must conduct training sessions for chronically low-rated drivers that are perceived to be overperforming in an attempt to enhance the standard of drivers is a financial burden on the policy, so it provides through its medical insurance, welfare for drivers and other guaranteed support, enabling a safer working OPERATIONAL DIRECTIVESThe policy improves accountability by requiring aggregators to set up a physical office within Maharashtra. This is likely to enhance the working relations of the aggregators with the drivers and the regulatory bodies concerning their smooth functioning and prompt attendance to their concerns.
Indian Express
30-04-2025
- Business
- Indian Express
Surge fare cap at 1.5x, driver penalty for cancelling rides: How Maharashtra's Aggregator Cabs Policy 2025 is a win for commuters
The Maharashtra Cabinet Tuesday approved the Aggregator Cabs Policy 2025. The Aggregator Cabs Policy 2025, cleared by the state Cabinet after a Supreme Court directive, seeks to make app cab operations safer, more transparent and commuter-friendly through regulations for cab-providing apps such as Ola, Uber, and Rapido. It also mandates aggregators to obtain proper licences and adhere to various technical, safety and operating norms. Such norms include GPS tracking, emergency contact features in the app, background checks for the driver, cybersecurity requirements, and improved grievance redressal. The policy applies to all app-based aggregators, especially those in urban settings. What was the need for this policy? The demand for the policy arose from an increase in passenger complaints and the absence of regulation within the industry. Users were often subjected to last-minute cancellations by drivers, volatile surge prices and safety issues, particularly for women commuters. Furthermore, there was a lack of accountability, including the absence of a driver refusal penalty or reporting of poor cab conditions. The Supreme Court instructed states to draft guidelines for app-based operators to address these concerns. Maharashtra's policy takes a cue from this instruction and a comprehensively drafted report by a committee headed by retired IAS officer Sudhir Kumar Srivastava. How will it benefit the customers or cab users? For cab users, the policy introduces a range of changes that promise a safer and more dependable ride experience. Mandatory emergency contact features and live GPS tracking will enhance passenger safety. It has become obligatory for aggregators to arrange for police verification to be completed for drivers, thereby minimising the possibility of unsafe journeys. To safeguard women, the policy provides a ride-sharing option with only women drivers and co-passengers if the passenger desires. Fare structures have also been made more transparent and monitored by the regional transport offices. Surge pricing has been capped at 1.5 times the base fare, and discounts of up to 25 per cent can be given during off-peak hours. Drivers who cancel rides or deny short trips will be penalised, with the penalty amount directly credited to the rider's account. Cabs in poor physical condition will also be delisted from the platforms. All these are aimed at making the ride smoother, fairer, and safer for commuters. What is in it for aggregator companies and drivers? Although the policy sets stricter rules, it also provides a clear system that enables aggregators to expand more responsibly. By presenting a licensed and legally accepted pathway, companies can conduct business with clarity and gain public trust. For drivers, the policy guarantees that they will receive at least 80 per cent of the fare paid per ride, meaning improved earnings. There is also provision for training and development. Drivers with consistently poor ratings will be required to undergo refresher training. The welfare of drivers and their families has also been taken into consideration, with medical insurance and other benefits to be included under aggregator obligations. Additionally, the policy clearly defines the responsibilities of aggregators. They will have to establish a physical office within Maharashtra, fit GPS devices in all cabs, and thoroughly check driver documents before employing. Aggregators will also need to provide training to drivers at every time of licence renewal, provide insurance to passengers and drivers, set up an efficient grievance redressal system, and adhere strictly to fare mechanisms established by the regional transport authorities. How will the policy be implemented? According to a senior official, the state transport department will shortly issue comprehensive guidelines to cab operators on how to enforce these regulations and a standalone rulebook will be made available for implementation. Cab aggregators will have to make technical adjustments on their platforms to incorporate features such as cancellation penalties for drivers and improved safety options for commuters. The state will also make it mandatory for aggregators to follow cybersecurity guidelines under the Information Technology Act, 2000, to better safeguard user information. The policy is likely to make app-based commuting in the state more secure, equitable, and dependable once it is fully rolled out.
