Maharashtra Aggregator Cabs Policy flawed: IFAT

Calls it discriminatory; says must align with Central Government guidelines

geetanjali

Geetanjali Minhas | May 23, 2025 | Mumbai


#Maharashtra   #policy  


On May 21, 2025, Maharashtra issued a government resolution (GR) on its Aggregator Cabs Policy 2025 to formalize the largely unregulated sector. The guidelines outline the framework on ride cancellations, surge pricing, driver earnings, among others for app based services like Ola, Uber. Now, the Indian Federation of App-based Transport workers (IFAT) has said the current version of the rules leaves several critical gaps that directly impact the livelihoods, dignity, and rights of thousands of drivers across the state.

It has urged the government to align the new framework with that of the Central government which were issued earlier. It says, “The Central Government had issued guiding principles for aggregators on 20th October 2020. Since 2021, IFAT and our local constituent union MAT have been consistently advocating for the implementation of these rules in Maharashtra.”

“Since 2018, the federation has been actively raising issues concerning the working conditions of Ola, Uber, and other app-based transport workers across the state. IFAT has formally written to the Government of Maharashtra, submitting detailed suggestions on the recently announced app-based transport policy. Along with our recommendations, we have also requested a formal meeting to engage in further discussions. We believe such a dialogue is essential to ensure that the final policy meaningfully reflects the concerns and rights of thousands of gig and app-based transport workers across the state,” said Prashant B Sawardekar, president, IFAT.

In the letter to the state government the trade union for app based transport workers has raised concerns and made suggestions on key aspects of the state policy as under:

Key Suggestions:

Minimum Fare Floor:
As against the state government’s  policy proposal  that  base fares during low-demand periods should not fall below 25% of the standard base fare is Rs31 for taxi  and Rs 28 for auto rickshaw for the first 1.5 km, respectively,  to protect drivers incomes it urges the government to match this benchmark with Central government’s 50% to ensure a more reasonable fare of Rs 15.50 and Rs 14 as against Rs 7.75 and Rs 7 under the 25% threshold.

Under Clause 13.3 of the 2020 Central Guidelines, the minimum threshold is 50% of the base fare.

Equal Treatment for Cancellations:
Currently, if a driver cancels a ride, they are fined 10% of the fare or Rs. 100 (whichever is higher), while passengers are only charged Rs 50 for cancellations.

Passengers are allowed to state reasons for cancellation, while drivers are not.

It recommends  introducing parity in cancellation policies with equal rights and penalties for both drivers and passengers.

Clarity on Key Provisions:
It urges clearer articulation on many important clauses in Central Guidelines from the 2020 and 2024 in Maharashtra policy. These include issues related to working hours, rest breaks, insurance, and data protection.

Transition to Electric Vehicle:
The state government's position and roadmap regarding the phased transition to electric vehicles needs to be clarified, particularly how it will impact small operators and driver-owners.

Implementation Timeline:
Government should clearly specify when the complete policy will be enforced, and the deadline by which aggregators must comply with all their responsibilities.

Welfare Board Provisions:
Make transparent and public details regarding the welfare board for app-based transport workers.

Time-bound Grievance Redressal Mechanism:
Have a time bound, inclusive and accountable  grievance redressal system.  Establish a Grievance Redressal Committee with equal representation from drivers, customers, aggregator companies, and government officials to ensure transparency and fair treatment of complaints from all sides.

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