Maharashtra Aggregator Policy Imposes 5x Penalty On Drivers Cancelling Airport, Railway & Hospital Rides

Mumbai: A week after the Maharashtra government implemented a comprehensive aggregator policy to regulate app-based taxi services such as Ola, Uber and Rapido, one of its key provisions has come into focus ,a fivefold penalty for drivers who cancel rides to airports, railway stations and hospitals after accepting a booking. Introduced under the Maharashtra Motor Vehicle Aggregator Rules, 2026, the provision aims to curb last-minute cancellations on time-sensitive trips and improve the reliability of app-based taxi services. The penalty amount collected from drivers will be credited directly to the rider's app account.

Normal penalty ₹100; 5x for critical destinations

Under Rule 17 of the Maharashtra Motor Vehicle Aggregator Rules, 2026, a driver who cancels a ride after accepting it will be liable to pay a penalty equal to 10 per cent of the total fare, capped at ₹100. If the driver fails to report within 10 minutes of the expected arrival time, the ride will also be treated as a driver cancellation and a ₹100 penalty will be imposed. However, for bookings to airports, railway stations and hospitals, the penalty will be five times the normal driver cancellation penalty. The government has also directed aggregators to build app features that discourage drivers from cancelling such trips.

The rules seek to balance accountability between both drivers and passengers. A rider who cancels a trip without a valid reason will have to pay a penalty equal to five per cent of the total fare, capped at ₹100, which will be credited to the driver's account. In cases where a cab develops a mechanical fault during a trip, the aggregator must arrange an alternate vehicle within 30 minutes for rides within municipal limits and within 60 minutes for intercity journeys exceeding 100 kilometres. Failure to do so will attract penalties under the rules.

Frequent cancellations on critical trips plague users

The fivefold penalty is expected to provide relief to passengers travelling for time-sensitive purposes, as last-minute cancellations on airport, railway station and hospital trips have been a frequent complaint among users of app-based cab services.

"Many drivers accept bookings but later cancel if they get a better fare. This is especially frustrating when you're rushing to catch a flight, a train, or trying to reach a hospital. A fivefold penalty is a welcome step, but it should be enforced strictly so that passengers actually benefit," said Ramesh Sharma, a regular app-based cab user from Mumbai.

Officials believe the stricter cancellation norms will improve passenger confidence and make app-based transport services more dependable. However, the effectiveness of the new provisions will ultimately depend on how strictly aggregators implement the rules and how effectively they are monitored by the state government.

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