Most commuters want states to penalise app-based taxi drivers for ride cancellations, finds survey

A majority of app-based taxi users now want their state governments to crack down on last-minute ride cancellations by cab drivers, a new survey found, with roughly 76 per cent of respondents calling for penalties similar to those recently adopted by the Maharashtra government.

A LocalCircles survey released on Monday found that ride cancellations have become a major inconvenience for app-based taxi users, often forcing them to wait longer for another vehicle to become available on the platform. The survey asked respondents whether other states should introduce penalties similar to those recently imposed by Maharashtra. Of the 22,317 respondents, 76 per cent said "yes, definitely," while 14 per cent supported the idea only if passengers were also penalised for unjustified cancellations. Just five per cent said "can't say," meaning 95 per cent backed similar penalties, either unconditionally or with conditions.

Why are app-based taxi users frustrated? Here's what the survey found

The survey found that for millions of urban commuters, booking an app-based taxi, which was once considered a hassle-free experience, is now becoming increasingly frustrating, especially with last-minute cancellations, drivers refusing to accept online payments, reluctance to travel to certain destinations, and unfair cancellation charges, which are usually imposed on customers.

For commuters, the impact goes beyond mere inconvenience. According to the survey, cancelled rides can result in missed flights, delays in reaching workplaces, higher fares due to repeated bookings, and added uncertainty during emergencies or late-night travel. The survey also found that many passengers complained of drivers asking them to cancel bookings themselves, allowing drivers to avoid platform penalties while leaving customers vulnerable to cancellation charges.

Why did Maharashtra introduce the Aggregator Cabs Policy?

The move came amid growing consumer dissatisfaction with app-based taxi services. According to a 2025 LocalCircles survey, about 82 per cent of users said they had experienced ride cancellations by drivers, up from 75 per cent in 2023, indicating that securing a confirmed ride has become more difficult despite the increasing use of ride-hailing platforms. The survey also found that 45 per cent of respondents had been charged cancellation fees in 2025, nearly double the 23 per cent recorded in 2023. Additionally, 74 per cent said drivers frequently cancelled rides after learning that the payment would be made digitally, the destination was inconvenient, or both.

What does Maharashtra's new Aggregator Cabs Policy say?

In 2025, the Maharashtra government introduced the Maharashtra Aggregator Cabs Policy, under which a driver who cancels an accepted ride without a valid reason will be asked to pay a penalty of 10 per cent of the fare or ₹100, whichever is lower, with the amount being credited to the passenger. However, if the driver cancels a ride to an airport, a railway station, or a hospital, the penalty can go up to five times the standard penalty or 50 per cent of the fare.

The policy also limits surge pricing to 1.5 times the base fare and requires app-based taxi aggregators to establish grievance redressal mechanisms along with other passenger-friendly measures. It is broadly in line with the Union government's Motor Vehicle Aggregator Guidelines 2025, which recommend imposing similar penalties on both drivers and passengers for unjustified ride cancellations.

However, it remains to be seen whether growing discontent among urban commuters will compel state governments to introduce norms that help improve the situation for commuters.