No More Free Cancellations: Mumbai’s New Cab Rules Bring Penalties for Riders and Drivers

Mumbai, May 28 – Starting June 2, Mumbai’s ride-hailing experience is about to change as the Maharashtra transport department introduces new cab cancellation rules that impose penalties on both passengers and drivers for last-minute cancellations.

Under the new policy, if a passenger cancels a ride after booking through an online platform without a valid reason, they will be charged 5% of the estimated fare or ₹50, whichever is lower. This fee will be credited directly to the driver to compensate for lost time and effort.

Conversely, if a driver cancels a ride after accepting it, they will be liable to pay 10% of the fare or ₹100, whichever is lower, which will then be transferred to the customer.

Maharashtra Transport Commissioner Vivek Bhimanwar stated that the new rules are aimed at curbing unnecessary cancellations and improving the reliability and fairness of ride services across the city.

The reforms don’t stop at cancellations. New surge pricing regulations have also been announced:

• Surge prices cannot exceed 1.5 times the regular fare,

• Discounts during off-peak hours cannot go beyond 25%, ensuring fare stability.

Additionally, the minimum distance for a cab ride has been set at 3 kilometers, and drivers must receive at least 80% of the fare paid by the customer, thereby promoting better earnings for drivers.

To further ensure passenger safety, the guidelines mandate that all ride-hailing apps must provide:

• Real-time ride tracking

• Emergency contact integration

• Comprehensive background checks on drivers

Cab aggregators have been given a two-month deadline to update their platforms and apply for a new operating license under these updated regulations.

As Mumbai embraces these new rules, the move is seen as a significant step towards more transparent, accountable, and rider-friendly urban mobility solutions.