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Time of India
25-05-2025
- Business
- Time of India
No more ‘Your ride has been cancelled'! Mumbaikars laud app cab penalty
Passengers too to be fined for cancelling ride at 11th hour after booking, states new GR In the absence of a driver refusal penalty in the past, thousands of Mumbaikars booking aggregator cabs faced mental agony from drivers cancelling rides. State govt has now come up with a government resolution, framing rules for imposing a fine of 10% of journey or Rs 100, whichever is lower, to the driver cancelling an Ola or Uber ride. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai 'We welcome this decision as this will deter aggregator cab drivers from cancelling rides,' said marketing executive Vishal Mishra. 'Once, I faced four such cancellations before getting a booking after 20 minutes for my destination. I was delayed for an important assignment that day.' It all began when the Supreme Court in the recent past instructed states to draft guidelines for app-based operators to address these concerns from riders. Maharashtra's policy took a cue from this instruction and a comprehensively drafted report by a committee headed by retired IAS officer Sudhir Kumar Srivastava. 'Drivers who cancel rides or deny short trips will be penalised, with the penalty amount directly credited to the rider's account,' said state transport commissioner Vivek Bhimanwar. The penalty is also imposed on riders cancelling rides at the eleventh hour after booking and the amount in that case is credited to the driver. While citizens have welcomed the govt decision to impose penalties, officials from Ola Cab and Uber were not available for comment. According to Prapti Thakker, who regularly takes autos, taxis, and private cabs from Ghatkopar, there has been a migration of passengers from aggregator cabs and autos to Kaali-Peeli taxis and regular autorickshaws, respectively, due to this cancellation nuisance. 'Once I was at a wedding event in Goregaon and booked a cab around 11 pm. The app showed the cab will reach the venue in 20 minutes. I waited till 11.18pm and saw the cab was almost nearing the location, but the driver suddenly cancelled the ride. I was left stranded and struggling to book another cab for my destination. After two more cancellations, I got a cab around midnight,' recalled Thakker. A commuter, who had last year switched to Kaali Peelis to travel across island city for work, said: 'When the app-based cab services began in 2014, there were incentives to riders and cabs would arrive in four to five minutes. But after the Covid pandemic, we have found drivers first asking about the destination, and then cancelling rides. Now, the aggregator firms have introduced a feature wherein the driver gets to know your destination at the time of booking and has the right to refuse immediately.' Another commuter said: 'The waiting time for an aggregator cab booking and the repeated cancellation of rides leave you fuming, and you may miss your flight. Now, I prefer taking Metro 7 from western suburbs to Gundavali and then catch a regular auto to T1 airport to board a flight.' Riders, who depend largely on aggregator autos in suburbs for short or long trips, said it was difficult to get such autos during rains. 'I could conveniently hail an auto on the road and travel to my destination, while saving money on the fare,' one such woman rider added. But commuter Veena Shetty said: 'The driver cancellation penalty should not just be for aggregator cabs, but should also be imposed on regular auto and Kaali-Peeli taxi drivers. There is a spate of refusals, with drivers not even helping senior citizens and women left stranded on the road. Govt should come out with a strict penalty for such refusals."
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.
Time of India
29-04-2025
- Business
- Time of India
1.5x surge fare cap, spot fine on drivers cancelling rides: State aggregator policy
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". You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your Finger Shape Says a Lot About Your Personality, Read Now Tips and Tricks Undo 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.
