In a significant move to protect consumer interests and ensure fair pricing, the Maharashtra Transport Department has imposed a cap on surge pricing by ride-hailing companies such as Uber, Ola, and Rapido. Under a new directive issued by the Mumbai Regional Transport Office (RTO) on September 16, 2025, ride aggregators will not be allowed to charge more than 1.5 times the base fare during high-demand periods, including festivals, peak hours, and emergencies.
The directive follows a government resolution dated May 20, 2025, which approved the implementation of the Aggregator Policy across Maharashtra. While the complete policy framework is still under finalization, key interim provisions have already come into force.
According to the recent directive issued by the Mumbai RTO to major ride aggregators—Uber India Systems Pvt. Ltd., ANI Technologies Pvt. Ltd. (Ola), and Roppen Transportation Services Pvt. Ltd. (Rapido)—strict fare regulations have been mandated to ensure transparency and fairness in pricing.
Firstly, a surge pricing cap has been introduced, whereby fares during periods of high demand cannot exceed 1.5 times the standard base fare, regardless of ride availability or traffic conditions. This measure aims to prevent excessive charges for passengers during peak hours or special events.
Secondly, the RTO has imposed a discount cap that restricts the maximum allowable discount during off-peak hours to 25% of the base fare. This prevents ride aggregators from engaging in unsustainable fare wars and helps maintain a balanced market structure.
Additionally, in a move designed to safeguard the interests of drivers, aggregators are now obligated to ensure that drivers receive a minimum of 80% of the fare collected from each ride. This provision is expected to improve earnings for drivers and promote better service quality through increased driver satisfaction.
The RTO has mandated all ride aggregators to update their platforms and pricing algorithms in compliance with the new rules by 5:00 PM on September 18, 2025. Non-compliance will attract strict action.
"The directive is a response to growing public frustration over exorbitant fares during holidays and emergencies, with commuters reporting charges of up to three times the standard rate." said an official of state transport department.
Officials also emphasized that these measures are aimed at ensuring transparency, fairness, and parity between app-based services and traditional meter-based taxis.
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