Maharashtra's New Taxi Policy: Surge Pricing Cap & Cancellation Penalties For Drivers & Passengers

On Tuesday, the Maharashtra state cabinet approved a new policy aimed at regulating the activities of app-based taxi aggregators. This policy comes after a directive from the Supreme Court and seeks to create a more structured and fair environment for both drivers and passengers. According to a Hindustan Times (HT) report, it introduces several key measures to address issues such as ride cancellations, surge pricing, and vehicle standards.

The policy, based on recommendations from a committee headed by retired IAS officer SK Shrivastava, was formulated following a Supreme Court order in February 2023. The committee submitted its report in April 2024. The new regulations are designed to ensure a better and safer experience for commuters while holding taxi aggregators accountable.

Key Highlights of the New Policy:

1. Cancellation Penalties

A major feature of the new policy is the introduction of penalties for both drivers and passengers who cancel rides without valid reasons. Drivers will face a penalty of 10 per cent of the fare or Rs 100, whichever is lesser, and this amount will be credited to the passenger's account. Similarly, passengers who cancel rides unnecessarily will be fined 5 per cent of the fare or Rs 50, whichever is lesser, with the amount going to the driver.

2. Surge Pricing Cap

The policy also addresses surge pricing, which has been a contentious issue for many commuters. It limits surge pricing to a maximum of 1.5 times the base fare. This will help prevent excessive charges during peak hours and ensure more affordable travel options for passengers.

3. Encouraging Electric Vehicles and Carpooling

In line with environmental goals, the policy encourages the use of electric vehicles (EVs) by app-based taxi services. Additionally, it promotes carpooling services, providing a more sustainable and cost-effective option for passengers. However, the policy specifies that women passengers can only use car-pooling services if the vehicle is driven by a woman, ensuring safety for female commuters.

4. Regulations for Aggregators and Drivers

The policy mandates that all taxi aggregators must have an office in Maharashtra. They will also be required to install GPS tracking systems in their vehicles, verify the credentials of drivers before recruitment, and train drivers when their driving licenses are up for renewal. Furthermore, aggregators must provide insurance coverage for both drivers and passengers, ensuring that all parties are protected in case of an accident. A robust grievance redressal mechanism will also be set up to handle complaints from commuters.

5. Fares and Local Transport Authority Oversight

The policy ensures that the fare structure for app-based taxis will be determined by regional transport authorities, with a cap on fare hikes. During non-peak hours, fares can be reduced by up to 25 per cent, while during peak hours, the fare hike will be capped at 50 per cent or 1.5 times the base fare.

This comprehensive policy aims to make app-based taxi services safer, more affordable, and more sustainable for the people of Maharashtra. The government believes these regulations will strike a balance between providing convenience to commuters and ensuring fair practices for drivers and aggregators alike.