Maharashtra has introduced stricter regulations for app-based cab services like Ola, Uber, and Rapido under the Maharashtra Motor Vehicle Aggregator Rules, 2026.
The new rules aim to reduce last-minute ride cancellations, improve passenger convenience, and make app-based transport services more reliable across the state.
Under the updated guidelines, both drivers and passengers may have to pay penalties for unnecessary cancellations.
Heavy Penalties for Cancellations to Airports, Stations and Hospitals
According to the new rules, drivers who cancel a ride after accepting the booking will generally have to pay a penalty of 10% of the total fare, with a maximum limit of ₹100.
This penalty amount will be directly credited to the passenger’s account.
However, cancellations involving important destinations like airports, railway stations, and hospitals will attract much higher penalties.
In such cases, drivers will have to pay 50% of the total fare to the passenger.
The government has increased penalties for these locations because delays can cause serious problems, including missed flights, delayed train journeys, or difficulties during medical emergencies.
Late Arrival Will Also Be Considered a Cancellation
The new rules also introduce penalties for drivers who do not reach the pickup location on time.
If a driver fails to arrive within 10 minutes of the expected arrival time, it will be treated as a driver-side cancellation.
In such cases, the driver will have to pay a penalty of ₹100.
This step is aimed at preventing drivers from accepting rides and then delaying arrival unnecessarily.
Passengers Will Also Pay for Unnecessary Cancellations
The updated rules apply to passengers as well.
If a passenger cancels a ride without a valid reason after a driver has been assigned, they will have to pay a penalty.
The passenger will be charged 5% of the total fare, up to a maximum of ₹100.
The collected amount will be transferred directly to the driver’s account.
The government believes this will create a more balanced system by discouraging cancellations from both sides.
New Responsibilities for Cab Aggregator Companies
The new regulations also increase responsibilities for ride-hailing platforms.
Cab companies will have to introduce technology solutions to reduce cancellations, especially for essential journeys to airports, hospitals, and railway stations.
In case of a vehicle breakdown during a trip, aggregators must arrange a replacement vehicle.
The replacement timelines are:
Within city limits: Replacement vehicle within 30 minutes.
Intercity trips above 100 km: Replacement vehicle within 60 minutes.
Passengers will not have to pay more than the originally agreed fare.
Aim to Improve App-Based Travel Experience
The Maharashtra government introduced these rules after receiving complaints about frequent cancellations, fare issues, and unreliable cab services.
By increasing accountability for drivers, passengers, and aggregator companies, the government aims to create a smoother and more dependable travel experience.
The new rules are expected to especially help people travelling to airports, railway stations, and hospitals, where timely transportation is extremely important.
