Whereas the coverage introduces a penalty of ₹100 or 10% of the fare (whichever is decrease) to be credited to the rider, it’s unclear whether or not the associated fee can be borne by the motive force or the cab aggregator.
Along with cancellation expenses, two different provisions are additionally anticipated to spark additional debate: the introduction of necessary meter pricing and a surge pricing cap of 1.5 instances the bottom fare, which may restrict driver incentives throughout high-demand intervals akin to festivals, peak hours, or adversarial climate circumstances.
The Maharashtra authorities formally rolled out the Aggregator Cabs Coverage 2025 on 1 Might, aiming to manage app-based cab providers. The coverage was developed following Supreme Courtroom directives urging states to manage the sector. The foundations are anticipated to be notified later this week, Maharashtra’s state officers stated.
Here is an summary of the provisions which have raised concern amongst business gamers.
Cancellation value
Trade executives from the ride-hailing business informed Mint that the coverage imposes an undue compliance burden on platforms that act purely as intermediaries. Since aggregators don’t personal automobile fleets, they argue they lack the management essential to handle driver behaviour round cancellations.
“Normally, it’s the motive force cancelling the trip—the platform has no incentive to try this. Aggregators don’t personal autos, so they can not implement the sort of management fleet operators can,” stated an government from the business near the matter.
Driver-led unions have additionally raised considerations that the cancellation clause may shift the monetary burden onto drivers.
“Cancellation will seemingly get pushed onto drivers, additional making it troublesome for them to maintain their livelihood,” stated Shaik Salauddin, nationwide normal secretary of the Indian Federation of App-Primarily based Transport Staff (IFAT).
Nevertheless, some consultants stated the coverage introduces accountability and could also be a step towards better professionalism within the sector.
“These penalties are anticipated to go to the aggregators that ought to additional go on to the drivers, resulting in extra professionalism within the sport. The final word beneficiary of this discipline-based construction goes to be the tip shopper, which is a welcome transfer by the federal government,” stated Amit Kaushik, managing director at City Science, an automotive consultancy agency.
Nonetheless, considerations persist about implementation. Executives famous that drivers usually reject rides informally, forcing customers to cancel their journey.
“Drivers can sport the system—delay pickups till the shopper cancels, for example. And if I’m a driver dealing with cancellation penalties, I’d slightly change to a platform that doesn’t cost me,” stated an government representing the businesses, talking on situation of anonymity.
“Even fashions like Namma Yatri and Sahakar Taxi ought to fall beneath the identical compliance lens. You’ll be able to’t regulate one section whereas letting others function freely,” they added.
Whereas Mint’s queries to Uber and Ola didn’t elicit a response, Rapido stated it might stay partly unscathed.
Rapido capabilities as a software-as-a-service (SaaS) supplier, charging drivers a one-time subscription payment and taking no fee from fares. Because of this, it considers itself a know-how supplier, not a conventional aggregator.
It operates on a mannequin the place no commissions are charged from drivers, and 100% of the fare goes on to the motive force’s account, “with no intervention or settlement on the platform,” an organization spokesperson stated.
As a substitute, it expenses drivers a one-time software program subscription payment, addressing the “dissatisfaction with excessive commissions charged by different platforms,” the corporate stated.
“That is akin to digitisation of offline negotiation as to an app based mostly negotiation,” the corporate clarified, including that, “we don’t face the issue of trip cancellation from the drivers on Rapido.” The mannequin mirrors these of different platforms akin to Namma Yatri and inDrive, which additionally bypass the standard aggregator construction.
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Compliance nightmare
Trade executives concern that regardless of the central authorities’s Motor Automobile Aggregators Pointers, 2020, state-specific rules would require aggregators to continuously regulate their software program, leading to a compliance nightmare and elevated prices.
“Jurisdictionally, it will likely be a software program nightmare. Every state-specific tweak will increase the price of compliance, which finally makes the enterprise mannequin unviable. Compliance shouldn’t enhance to an extent the place enterprise fashions start to appear to be charity,” stated an government from the ride-hailing business.
Trade gamers additionally identified that the present regulatory setting could incentivise each drivers and platforms to shift towards Saas-based codecs, that are largely exempt from such regulation.
“You now have fashions like Namma Yatri, Sahakar Taxi, and Rapido. If these proceed to develop, drivers will naturally be drawn to them. The query is: Are we unintentionally pushing all aggregators to undertake this format simply to keep away from compliance?” stated one other business official.
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Surge cap
The supply on surge cap of 1.5 instances the bottom fare which may curb pricing flexibility throughout high-demand intervals can also be prone to backfire, consultants stated.
“Surge isn’t nearly earnings—it’s additionally the way you incentivize drivers to answer demand spikes. If the federal government itself makes use of surge pricing in different providers, clearly the mannequin has benefit,” stated one other government, representing the businesses, talking on situation of anonymity.
Surge pricing, also called dynamic fare pricing, is carried out by the state-owned Indian Railway Catering and Tourism Company (IRCTC) for practice tickets throughout peak instances. In regulated industries like airways, this pricing technique helps handle demand and optimize service availability.
Meter pricing
The necessary meter pricing is probably not a possible mannequin, business executives stated, noting that clients switched to different platforms within the first place as a result of conventional fashions have been unreliable.
“Prospects jumped to those platforms for 2 causes: simpler entry to cabs and extra predictable pricing. Whereas meters are meant to make fares clear, the shortage of different technological improvements (like app-based fare estimates) nonetheless leaves customers with an uncomfortable feeling of fare unpredictability and repair availability,” stated an government from the ride-hailing business.
Maharashtra state officers maintained that this coverage is important to make sure fare transparency and curb exploitation of riders. They emphasised that these new guidelines goal to strike a stability between shopper safety and driver welfare, enhancing service reliability and security in Maharashtra’s fast-growing city mobility sector.
As of now, there isn’t a publicly introduced formal suggestions window for stakeholders or the general public to submit feedback on the coverage. Nevertheless, the state transport division has indicated that operational pointers are being finalised and can be communicated to all stakeholders quickly.
Whereas Maharashtra’s new coverage makes an attempt to deliver better accountability and shield shopper pursuits, the execution can be carefully watched, notably for its impression on driver earnings, platform viability, and the broader way forward for app-based mobility in India.
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