Maharashtra mandates cancellation fee from ride-hailing firms for driver-initiated cancellations

Mumbai: In a significant move aimed at ensuring fairness for commuters, the Maharashtra government has introduced a new rule requiring ride-hailing companies like Ola, Uber, and Rapido to compensate customers when drivers cancel confirmed rides. The decision comes in the wake of a growing number of complaints about one-sided cancellation penalties imposed on users.

Currently, passengers who cancel a ride are often charged a cancellation fee, regardless of the reason. However, if a driver cancels after accepting the booking, no such penalty applies—leaving customers frustrated and wasting their valuable time. The new regulation seeks to correct this imbalance.

Under the revised rules, companies must now pay a cancellation fee to customers if a driver cancels an already confirmed ride. The government argues that just as customers are penalised for backing out, companies and their drivers should be equally accountable for failing to deliver a confirmed service.

The regulation also acknowledges the impact of delays and disruptions caused by such cancellations, with authorities asserting that compensation is due when a customer’s time is wasted through no fault of their own. The goal is to curb arbitrary cancellations and improve the reliability of app-based transport services.

The announcement has been met with overwhelming support from users. Many have welcomed the move as a long-overdue step toward balancing customer rights with service provider accountability. “If we pay when we cancel, they should too,” remarked one user on social media.

By enforcing equal rules for both riders and drivers, the government hopes to encourage better service standards and restore trust in app-based transportation systems.