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Surge pricing curbs, mandatory rest for drivers: Maharashtra draft rules for app-based cab aggregators

New rules aim to make relationship between aggregator companies, drivers and passengers more transparent, and improve fares, service quality, driver rights, and passenger safety.

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Mumbai: The Maharashtra government on Friday published draft rules for app-based cab aggregators that aim to control surge pricing, ensure that the drivers are not overworked and are properly trained. These are in line with guidelines issued by the Centre.

The state government has invited suggestions and objections from stakeholders by 17 October.

Under a government resolution (GR) titled the ‘Maharashtra Motor Vehicle Aggregator Rules, 2025′, the draft framework aims to regulate digital aggregators and operators including e-rickshaws, Ola, Uber, Rapido, and others similar public transport vehicles, except motorcycle services.

As per the policy, the company cannot charge more than 1.5 times the original fare during peak hours. Lowering fares below 25 percent of the base rate during low demand is also prohibited.

Currently, the state government has no control over surge price.

The company has to provide flexibility to drivers to use the app for a maximum of 12 hours per day, with a rest time of at least 10 hours. Due to this, while making the ride safer for passengers, the drivers too will get relief, the draft rules say.

The draft rules say that the convenience fee charged from riders should not exceed 5 percent of the base fare, and the total deduction should not be more than 10 percent.

Aggregator apps will be required to provide passengers with travel insurance coverage of up to Rs 5 lakh, and only vehicles less than nine years old (in the case of autos and cabs) or less than eight years old (in the case of buses) will be eligible for operations.

As per the draft, these new rules aim to make the relationship between aggregator companies, drivers, and passengers more transparent; improve fares, service quality, driver rights, and passenger safety.

Drivers must undergo a 30-hour orientation and motivation training programme before being onboarded.

The draft rules further say drivers with an average rating below two stars out of five will have to undergo corrective training and remain suspended from the platform until they do so.

In order to obtain a new licence either from the State Transport Authority or from the Regional Transport Authority, aggregators will have to pay a fee of Rs 10 lakh (State Transport Authority) and Rs 2 lakh (Regional Transport Authority). For renewal, they will have to pay Rs 25,000 and Rs 5,000, respectively.

Aggregators will also have to maintain a security deposit based on the number of vehicles they operate either Rs 10 lakh for up to 1,000 vehicles, or Rs 25 lakh for up to 10,000 vehicles, and Rs 50 lakh for more than 10,000 vehicles.

“These (draft) rules are expected to enhance passengers’ confidence, safety and the quality of service in the app-based taxi sector. The introduction of clear working limits and welfare provisions will help prevent the exploitation of drivers,” said state transport minister Pratap Sarnaik to the media.

Earlier this year, the government had approved the Maharashtra Bike Taxi Rules 2025 for the bike-taxi aggregators.

The draft rules for non bike-taxi vehicles follow the Uber, Ola driver strike last month.

Hundreds of drivers of app-based taxis and auto rickshaws from Mumbai and other parts of Maharashtra staged a protest 30 September at Azad Maidan to press various demands, including a fare hike. The Maharashtra Gig Kamgar Manch has demanded a rationalisation of fares, bringing fares at par with fares for the conventional black & yellow metered cabs, prohibition of bike taxis and a cap on permits of black & yellow cabs and auto rickshaws, among other things.

(Edited by Viny Mishra)


Also read: Gig dream is fading for Uber, Ola drivers. They are forming picket lines & support groups


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