State Draft Rules Rolled Out to Regulate Ola, Uber, Rapido services

The Maharashtra government has released the draft Maharashtra Motor Vehicle Aggregator Rules, 2025, aimed at introducing a comprehensive regulatory structure for app-based transport services, including cabs, e-rickshaws, and tourist vehicles. Issued under Sections 73, 74, and 93 of the Motor Vehicles Act, 1988, the draft rules seek to standardise fares, enhance safety measures, and ensure welfare for drivers, while bringing greater transparency to app-based commuting.

According to Transport Minister Pratap Sarnaik, the proposal has been designed to strengthen public confidence and improve operational fairness. He noted that the initiative was intended “to make app-based travel safer and more transparent for both drivers and passengers” while ensuring that “drivers are not exploited.”

The new regulatory framework will apply to all passenger aggregators operating in Maharashtra — including motor cabs, e-rickshaws, and tourist buses — while bike taxis will remain governed by the Maharashtra Bike Taxi Rules, 2025. App-based service providers will be required to obtain licences from the State or Regional Transport Authorities, with fees fixed at ₹10 lakh for statewide licences and ₹2 lakh for district-level permissions. Renewal charges have been pegged at ₹25,000 and ₹5,000 respectively.

To maintain accountability, companies will need to furnish a security deposit determined by fleet size — ₹10 lakh for up to 1,000 vehicles, ₹25 lakh for up to 10,000, and ₹50 lakh for fleets exceeding that number. Each licence will remain valid for five years.

In an attempt to curb surge pricing, the draft rules cap peak fares at 1.5 times the regular base rate, while setting a minimum fare threshold at 75 per cent of the base rate during low-demand hours. Convenience fees cannot exceed 5 per cent of the base fare, and overall deductions, including commissions, must not surpass 10 per cent.

For drivers, several welfare measures have been embedded into the framework. App log-in hours will be restricted to 12 per day, with a mandatory rest period of 10 hours before resumption of service. New drivers will undergo a 30-hour training module focused on road safety, digital literacy, and service conduct. Any driver whose rating drops below two stars will face suspension until retraining is completed.

To strengthen passenger protection, every trip will include an optional insurance cover of ₹5 lakh. Additionally, older vehicles — beyond nine years for cabs and e-rickshaws or eight years for buses — will be disqualified from service.

Digital inclusivity has also been prioritised. Aggregator apps will be required to operate in Marathi, Hindi, and English, feature real-time location sharing, and offer accessibility functions for passengers with disabilities. In a step to prevent trip refusals, the rulebook mandates that drivers will not be shown passengers’ destinations prior to accepting bookings.

Officials stated that the framework was developed to bring “order and accountability” to the rapidly expanding app-based transport sector, which has long faced issues concerning fare disputes, driver earnings, and safety lapses. Once implemented, Maharashtra will become one of the first Indian states to enforce a full-fledged regulatory framework inspired by the Centre’s 2020 Aggregator Guidelines.

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