Maharashtra Notifies New Aggregator Rules for Ola, Uber, Rapido; Caps Surge Pricing at 1.5x

The Maharashtra government has notified the Maharashtra Motor Vehicle Aggregator Rules, 2026, bringing app-based passenger transport services such as Ola, Uber and Rapido under a uniform regulatory framework covering licensing, fares, passenger safety, driver welfare, vehicle standards and grievance redressal. The rules were notified in July 2026 and require aggregators operating in the state to obtain a licence and a Unique Licence Identification Number (ULIN).

Under the new framework, the Regional Transport Authority (RTA)-approved fare will serve as the base fare. Aggregators can offer fares up to 25% below the base fare, while surge pricing can rise to a maximum of 1.5 times the base fare. Drivers must receive at least 80% of the fare collected. Under a convenience-fee model, drivers must receive at least 95% of the base fare.

The rules also introduce penalties for ride cancellations. A driver who cancels an accepted booking without a valid reason can be penalised 10% of the fare, capped at ₹100, with the amount credited to the passenger. For rides to airports, railway stations and hospitals, the penalty can rise to 50% of the fare. Drivers can also face a ₹100 penalty for failing to reach the designated pickup location within 10 minutes of the scheduled arrival time.

Passengers can also be penalised for cancelling an assigned ride without a valid reason. The framework provides for a 5% cancellation charge, capped at ₹100, with the amount going to the driver. This provision builds on Maharashtra’s earlier aggregator policy, which had also introduced penalties for passenger cancellations.

In the event of a vehicle breakdown during a trip, aggregators must arrange a replacement vehicle within the prescribed time limits, while the passenger’s originally agreed fare is protected. The rules also establish broader accountability provisions, allowing authorities to suspend or cancel an aggregator’s licence for repeated violations, passenger-safety lapses, fare irregularities and other breaches. Monetary penalties can range from ₹1 lakh to ₹1 crore, depending on the nature and severity of the violation.

Passenger safety requirements have also been tightened. Aggregators must provide 24-hour customer support, grievance-redressal mechanisms, real-time GPS tracking and live journey-sharing facilities. Their apps must support Marathi, Hindi and English, while mobile applications will also require cyber-security certification. Vehicles must be equipped with AIS-140-compliant tracking systems with panic buttons and first-aid kits.

Vehicles listed on aggregator platforms must have valid registration, permits, fitness certificates, insurance and pollution-control certificates, along with cleared e-challans. Cabs and autorickshaws older than nine years and buses older than 12 years cannot be onboarded under the new rules.

The framework also introduces additional provisions for drivers. Drivers must hold valid licences and badges and complete prescribed training. They cannot be required to drive for more than 12 consecutive hours and are permitted to work with multiple aggregators. The rules also include provisions aimed at preventing drivers from operating under the influence of alcohol or drugs.

The regulations extend beyond conventional cab and auto services. They provide a legal framework for private carpooling, provided it is not operated for commercial profit and users only share travel expenses. Women opting for ride-pooling will also have the option of travelling only with women co-passengers.

The state has additionally mandated a gradual increase in the use of electric and alternative-fuel vehicles on aggregator platforms. Provisions have also been included for vehicles adapted for persons with disabilities, aligning the policy with Maharashtra’s broader push for cleaner and more accessible mobility.

The rules come after years of debate over regulation of app-based mobility platforms in Maharashtra. The state had previously introduced an aggregator policy in 2025, while draft Maharashtra Motor Vehicle Aggregator Rules, 2025 were subsequently released for consultation. The 2026 framework now provides a more comprehensive regulatory structure for licensing, operations and enforcement.

Transport Minister Pratap Sarnaik has said the framework is intended to make app-based transport safer, more transparent and accountable while protecting driver interests and creating employment opportunities.

The government has also moved toward enforcing the licensing requirement. Sarnaik has directed aggregator companies to complete the required registration/licensing process by September 1, 2026, with action threatened against platforms that fail to comply.

The new rules could significantly change how ride-hailing platforms operate in Maharashtra, particularly around pricing, driver payouts, cancellations, safety compliance and vehicle eligibility. For consumers, the most immediate changes are the cap on surge pricing, cancellation penalties and stronger safety requirements, while aggregators face higher compliance costs and the possibility of substantial penalties or licence action for violations.