Ola, Uber Will Now Pay You For Ride Cancellations Thanks To This New Policy: All You Need To Know

On May 1, 2025, Maharashtra's government brought out the Aggregator Cabs Policy 2025, an app-based cab service regulatory policy for Ola, Uber, and Rapido. Drafted in response to growing public complaints and a Supreme Court directive, the policy was drafted by a committee led by retired IAS officer Sudhir Kumar Srivastava. The policy promises safer, fairer, and transparent operations within the ride-hailing sector, which has so far operated with hardly any regulation.

Passenger-Friendly Reforms

One of the key reasons for the policy was the increasing number of passenger grievances, including random cancellations, surge pricing abuse, and safety lapses, especially for women. To address them, the policy implements various compulsory reforms that prioritise the safety of passengers. They are compulsory real-time GPS in all taxis, and the deployment of emergency buttons.

Police verification for all drivers has been made mandatory, and ladies can opt to ride with ladies as drivers and co-passengers for added safety. Surge has been limited to 1.5 times the base price to avoid unscrupulous fare surging during peak periods. Passengers will also get a refund in case a booking is cancelled or service is declined by a driver without a valid cause. Vehicles that are unfit or in bad condition will be removed from the road.

Powering and Protecting Drivers

The policy provides a more even framework for drivers by asking them to receive at least 80% of the fare generated from each trip. It also gives drivers access to insurance, training, and welfare. Drivers with poor customer ratings will regularly need to attend refresher training courses to raise service levels.

Aggregator platforms will also be required to follow strict new guidelines. They will need to set up physical offices in Maharashtra, install GPS systems in all vehicles, and follow data protection and document authentication by the IT Act, 2000. They will also need to provide insurance coverage for drivers and passengers.

What Comes Next

The policy also emphasises increased cybersecurity, increased fines for driver indiscipline, and app overhauls to include these new standards. The state Transport Department will soon issue a detailed implementation plan.

Overall, the Aggregator Cabs Policy 2025 hopes to inject much-needed standardisation and accountability into the app-based ride-hailing sector. With a focus on passenger safety as well as the well-being of the driver and keeping aggregators in line, the policy promises to deliver a safer, simpler, and more equitable urban mobility environment for Maharashtra.