Maharashtra's draft rules for vehicle aggregators cap surge pricing, limit working hours of drivers

The Maharashtra government on Friday issued draft rules for app-based aggregators of public transport vehicles which seek to cap surge pricing and lowering of fares, limit working hours of drivers, and provide for travel insurance, among other things.

The state government has invited objections and suggestions from stakeholders on the draft rules, which are in line with the central guidelines, by October 17.

Issued as part of a government resolution (GR) titled the "Maharashtra Motor Vehicle Aggregator Rules, 2025", the draft framework aims to regulate digital aggregators and operators of motor cabs, tourist cabs, luxury cabs, contract carriage buses, camper vans and other similar public transport vehicles, except motorcycles.

Earlier this year, the state had approved the Maharashtra Bike Taxi Rules, 2025, for bike-taxi aggregators.

The draft rules will apply to all passenger motor vehicle aggregators, including e-rickshaws. Thus, services such as Ola, Uber and e-rickshaw operators will fall under this regulatory framework.

As per the draft rules, a driver will not be able to see a passenger's destination before accepting a ride, and aggregator apps must allow live location sharing and trip status tracking.

The draft rules also make accessibility features for differently-abled passengers mandatory.

Currently, passengers often face cancellation of rides when drivers learn the destination and are not willing to make the trip.

Surge pricing cannot exceed 1.5 times the base fare fixed by the Regional Transport Authority (RTA) as per the draft rules, while lowering fares below 25% of the base rate during low demand too is prohibited.

Presently, the state government does not have any control over fare surge in the absence of any rules.

The draft rules also prescribe that the convenience fee charged to riders should not exceed 5% of the base fare, and the total deduction should not be more than 10%.

Aggregator apps will be required to provide passengers with travel insurance coverage of up to Rs 5 lakh, and only vehicles less than nine years old (in the case of autos and cabs) or less than eight years old (in the case of buses) will be eligible for operations.

The rules also specify that aggregator apps must be available in Marathi, Hindi and English.

Drivers will be allowed to stay logged into an app for a maximum of 12 hours per day, followed by a mandatory 10-hour rest period. They must undergo a 30-hour orientation and motivation training programme before being onboarded.

Drivers with an average rating below two stars out of five will have to undergo corrective training and remain suspended from the platform until they do so.

While obtaining a new licence from the State Transport Authority (STA) or Regional Transport Authority (RTA), aggregators will have to pay a fee of Rs 10 lakh and Rs 2 lakh, respectively. For renewal, they will have to pay Rs 25,000 or Rs 5,000.

Additionally, aggregators will be required to maintain a security deposit based on the number of vehicles they operate, Rs 10 lakh for up to 1,000 vehicles, Rs 25 lakh for up to 10,000 vehicles, and Rs 50 lakh for more than 10,000 vehicles.

A senior transport department official told PTI that the draft rules conform to the Motor Vehicle Aggregator Guidelines, 2025 issued by the Union Ministry of Road Transport and Highways.

According to a release from state transport minister Pratap Sarnaik's office, the rules, proposed under the Motor Vehicles Act, 1988, are intended to bring greater discipline, transparency and passenger safety to app-based transport services.

"These (draft) rules are expected to enhance passengers' confidence, safety and the quality of service in the app-based taxi sector. The introduction of clear working limits and welfare provisions will help prevent the exploitation of drivers," Sarnaik said.