Maharashtra Govt Issues Draft Rules to Regulate Ride-Hailing Platforms

The Maharashtra government has issued draft guidelines for the “Motor Vehicle Aggregator Rules, 2025”, which are aimed at regulating app-based public transport operators. The policy includes fare rules under which the ride-hailing platforms cannot charge more than 1.5 times than the original fare.  

The government has invited stakeholders to submit their operations and suggestions by October 17. The app-based transport aggregators will be required to obtain a licence through a state-run portal, with fees fixed at ₹10 lakh for state-wide operations and ₹2 lakh for district-level operations, the rules read.

The Regional Transport Authority (RTA) will set standard base fares for taxis, auto-rickshaws, and other passenger vehicles, which all aggregator platforms will be mandated to follow. It also stated that surge pricing may vary between 25% below to 1.5x above the base determined by the RTA.

And if a booked ride is cancelled, a penalty of 10% of the fare (capped at ₹100) will be charged and credited back to the consumer’s app wallet. For cancellations made without valid justification, an additional fine of ₹100 or 5% of the total fare, whichever is higher, may be imposed.

Additionally, the draft also stated that cab aggregators will be required to reimburse not less than 95% of base fare to the driver. It has also capped driver working hours at 12 hours of login time per day, which requires a minimum of 10-hours rest period between shifts.

Drivers must complete 30 hours of induction training covering road safety, digital skills, and service quality. Aggregators must also offer optional passenger insurance worth ₹5 lakh per trip, which ensures customers have the choice of added protection during rides.

The apps must also have features like emergency contact, verification of driver identity, deviation alerts (if driver strays from route) along with ensuring a real-time GPS tracking of vehicles. 

This came after cab drivers started protested against their working conditions and fares on July in Mumbai. They demanded fare parity with conventional ‘Black & Yellow’ taxis (₹32/km for AC cabs), and ban on bike taxis operating through aggregator apps.

Besides these, the agitators also demanded permit caps for black-and-yellow taxis along with auto rickshaws, formation of a welfare board for gig-based transport workers, and introduction of a ‘Maharashtra Gig Workers Act’ models on policies adopted by other states.