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Maharashtra government releases draft rules for cab aggregators, caps surge pricing at 1.5 times base fare

Updated on: 12 October,2025 07:22 AM IST  |  Mumbai
Rajendra B. Aklekar | rajendra.aklekar@mid-day.com

Draft rules have been released to cap the price surge on cab apps to 1.5 times the base fare; discounts have also been capped at 25 per cent.

Maharashtra government releases draft rules for cab aggregators, caps surge pricing at 1.5 times base fare

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Next time you book an Ola, Uber or Rapido, your finger won’t hover over “confirm trip” while your eyes water at the exorbitant surge pricing. The Maharashtra government on Saturday released draft rules for cab aggregators, capping surge pricing at 1.5 times the RTO’s base fare. Discounts have also been capped at 25 per cent.

Although not made into a rule yet the draft has suggestions — such as charging no more than Rs 800 for Bandra-to-Andheri rides. Drivers, on the other hand, have been assured of a bigger slice of the pie — at least 80 per cent of the fare under surge models, and 95 per cent under the convenience fee model. Currently, drivers only get 50 per cent under both models.


The rules also bring in Rs 5 lakh travel insurance. Cab apps must now also run in Marathi, Hindi and English. Cancellations — the biggest commuter pain point — will attract strict penalties. The draft proposes that if an airport, station or hospital ride is cancelled, the driver will have to pay a penalty fee that’s five times higher than the current fine (10% of the total fare). Aggregators will also need to send a replacement cab within 30 minutes inside the city.



Additionally old vehicles — autos and taxis over nine years old, and cars over 15 — will be phased out.  The draft rules are open for public feedback till October 17. Suggestions and objections can be sent to the Transport Commissioner’s office at Fort. 

Some highlights

>> For women, pooling could get safer, with a proposal to allow women-only ride shares.
>> Aggregators must gradually shift to electric and clean-fuel vehicles, so expect more e-ricks and e-cabs in the coming years.
>> Private cars get a legal nod for carpooling — but only on a cost-sharing basis, no profits allowed.

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