The Maharashtra government has released draft rules for app-based cab aggregators that aim to prevent erratic pricing and ensure that drivers are not exploited, according to a report by The Indian Express.

Titled the 'Maharashtra Motor Vehicle Aggregator Rules, 2025', the draft has been published under Sections 73, 74 and 93 of the Motor Vehicles Act, 1988, and the state government has invited suggestions and objections from stakeholders by October 17.

Maharashtra's Transport Minister Pratap Sarnaik said that this move aims to make app-based travel more transparent and safer for passengers and drivers alike.

"These rules will increase public confidence, improve service quality and ensure that drivers are not exploited," he remarked.

Under the proposed framework, app-based cab aggregators are required to obtain a licence either from the State Transport Authority (STA) or from the Regional Transport Authority (RTA). The licence fee has been set at Rs 10 lakh for the state level and Rs 2 lakh per district, with renewal charges of Rs 25,000 and Rs 5,000 respectively.

Aggregators will also have to pay a security deposit based on the number of vehicles they operate -- Rs 10 lakh for up to 1,000 vehicles or 100 buses, Rs 25 lakh for up to 10,000 vehicles or 1,000 buses, and Rs 50 lakh for anything over and above . The licence will have a validity of five years.

Additionally, the draft rules say that aggregator apps will need to provide passengers with an optional travel insurance coverage of up to Rs 5 lakh, and only those vehicles can operate on aggregator platforms that are less than nine years old (in case of autos and cabs) or less than eight years old (in the case of buses).

The new structure further mandates aggregator apps to provide real-time location sharing for passengers and incorporate accessibility features for persons with disabilities. In a major change aimed at curbing trip refusals, drivers are prohibited from seeing passengers' destinations before accepting rides. Notably, the state government has no control over trip refusals currently.

As per the draft rules, companies such as Ola, Uber and Rapido cannot charge surge fares more than 1.5 times the base fare that the RTA fixes. For context, this is a phenomenon known as surge pricing, which occurs when the demand for rides exceeds supply owing to weather-related conditions or rush hour traffic, causing fares to increase in real-time.

Notably, charging less than 75% of the RTA-fixed fare during low-demand hours is also prohibited. Elsewhere, the convenience fee charged from riders should not exceed 5% of the base fare, and the total deduction -- including the platform's commission -- cannot exceed 10%.

For drivers, the draft policy mandates a number of safeguards to ensure they are not overworked. Drivers can be logged into the app for a maximum of 12 hours per day, with a rest time of 10 hours minimum. The move is apparently aimed at enhancing passenger safety while also bringing some relief to drivers.

Furthermore, drivers will need to undergo a 30-hour mandatory training programme before being onboarded on a platform. Importantly, drivers with ratings of less than two stars must undergo retraining, as they will be temporarily suspended from the platform until they do so.

Interestingly, the draft rules come months after the Maharashtra Government notified the Aggregator Cabs Policy 2025 in May, setting guidelines on ride cancellations, surge pricing, and driver earnings, among others.

Furthermore, in July this year, the state government notified the electric bike taxi rules, allowing electric bike taxis to operate legally in Maharashtra.

The draft rules come amid reports that hundreds of Ola, Uber, and Rapido drivers recently staged a protest to draw attention to various demands, including a fare hike.

The Maharashtra Gig Kamgar Manch, the union that led the strike, demanded fare rationalisation, bringing the rates on par with those of conventional black & yellow cabs, a ban on bike taxis, and a cap on permits for black & yellow taxis and auto-rickshaws.

Among the other demands of the union were establishment of a welfare board for drivers of app-based cab aggregator companies, and the introduction of a law for gig workers, something which has been apparently been addressed by the current release of the draft rules for cab aggregators.

Prior to this protest, gig worker unions Telangana Gig and Platform Workers Union (TGPWU) and the Indian Federation of App-based Transport Workers (IFAT) had opposed the Centre's Motor Vehicle Aggregator Guidelines, 2025, for a lack of a nationwide uniform fare structure.

Maharashtra's current draft rules for app-based cab aggregators also follow multiple user complaints against the operation of ride-hailing apps in India. In January 2025, the CCPA issued notices to aggregators Ola and Uber to address issues of differential pricing for Apple and Android users.

Furthermore, a survey published last year by consumer community platform LocalCircles found that 75% of the 11,000-plus survey participants faced cancellations by drivers, while 62% reported surge pricing while using such applications.

Coming to drivers, app-based transport workers have also highlighted operational issues with aggregators. In December 2024, the TGPWU announced a campaign to boycott airport trips by Ola, Uber, and Rapido in response to the persistent low fares imposed by such platforms.

Overall, while Maharashtra's current draft rules promise some relief for drivers and app users alike, its enforcement and adequate implementation remain to be seen.

Once finalised and implemented, Maharashtra will become one of the first states to comprehensively regulate operations of digital app-based cab aggregators through its own set of rules, modelled on the Centre's 2020 aggregator guidelines.

Maharashtra Rolls Out Draft Rules For App-Based Cab Services