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Maharashtra Enforces 10% Fine on App-Based Cab Drivers for Cancellations

The Maharashtra government has introduced a new policy imposing a 10% fine on app-based cab drivers who cancel rides without valid reasons. This move aims to enhance accountability and improve the experience for commuters using services like Ola and Uber.


๐Ÿš– Key Highlights of the New Policy

  • Driver Cancellations: If a driver cancels a ride after accepting it, they will be fined 10% of the fare or โ‚น100, whichever is lower. This amount will be credited to the customer’s account.
  • Passenger Cancellations: Passengers canceling without a valid reason will incur a penalty of 5% of the fare or โ‚น50, whichever is lower, credited to the driver’s account.
  • Fare Regulations: Base fares will be determined by the Regional Transport Authority. Discounts during low-demand periods are capped at 25%, and surge pricing during high-demand periods cannot exceed 1.5 times the base fare.
  • Minimum Trip Distance: Set at 3 kilometers to standardize fare calculations.
  • Driver Earnings: Drivers are entitled to receive at least 80% of the total fare collected.
  • Safety Measures: Aggregators must ensure real-time GPS tracking, emergency contact options, and conduct thorough background checks on drivers.
  • Training and Insurance: Mandatory training for drivers at recognized institutions and compulsory insurance coverage for both drivers and passengers
  • Electric Vehicle Adoption: Aggregators are encouraged to gradually integrate electric vehicles into their fleets, aligning with the state’s sustainability goals.

๐Ÿ“Š Impact on Stakeholders

This policy is expected to reduce last-minute cancellations, ensuring a more reliable service for passengers. For drivers, it emphasizes the importance of commitment to accepted rides, while also providing a fair compensation structure and safety measures.

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