Whalesbook
The Maharashtra government has introduced the draft Motor Vehicle Aggregator Rules, 2025, outlining a comprehensive framework for app-based ride-hailing services across the state. Aggregators must obtain a license, with fees set at INR 10 Lakh for state-wide operations or INR 2 Lakh for district-wise coverage. These rules mandate that the Regional Transport Authority (RTA) will determine standard base fares applicable to all aggregator services for cabs, autos, and tourist buses. Surge pricing is permitted but capped between 25% below and 1.5 times the base fare.
For passengers, a cancellation penalty of 10% of the total fare (not exceeding INR 100) will be credited to their app wallet, with an additional INR 100 or 5% penalty for unjustified cancellations. Drivers are assured of receiving not less than 95% of the base fare. Working conditions are also regulated, with a maximum of 12-hour login periods and required 10-hour rest breaks, alongside 30 hours of induction training covering road safety, digital literacy, and service standards. Passenger insurance of INR 5 Lakh per trip is to be offered optionally. Drivers whose ratings fall below two stars will face temporary suspension and mandatory retraining.
Safety features like emergency contacts, driver identity verification, deviation alerts, and real-time GPS tracking will be mandatory in the apps. These regulations apply to cabs, autos, and tourist buses, with bike taxis operating under separate Maharashtra Bike Taxi Rules, 2025. The draft rules follow intermittent strikes by drivers demanding better pay and protections. The draft is available for public comment until October 17.
Impact:
These regulations are expected to standardize the ride-hailing industry, potentially increasing operational costs for aggregators due to higher driver payouts and compliance requirements. However, they aim to improve driver welfare and passenger safety, which could lead to better service quality and reduced disputes. The RTA-set fares and surge pricing caps may influence pricing dynamics for consumers. Rating: 7/10.
Difficult terms:
- Aggregators: Companies that use digital platforms (apps) to connect drivers with passengers, such as Ola and Uber.
- Regional Transport Authority (RTA): A government body responsible for regulating and managing road transport within a specific region. They will determine base fares for cabs and autos.
- Surge Pricing: A pricing mechanism where fares increase automatically during periods of high demand or low availability to balance supply and demand.
- Gig Workers: Independent contractors who are paid for short-term jobs or tasks, rather than being permanent employees. Ride-hailing drivers are often considered gig workers.
- EV Bike-Taxi Policy: A specific government policy designed to regulate and promote electric two-wheeler taxi services.