Cab Cancellation Woes: 76% Of Users Call For Hefty Penalties, Stricter Action On Drivers, Survey Reveals

Survey of over 22,000 app taxi users shows 76% support penalties for drivers who cancel rides after acceptance, following Maharashtra's policy model.

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More than three-fourths or 76% of app-based taxi users want their state governments to introduce penalties for drivers who cancel rides after accepting them, according to a survey.

The survey asked, "Maharashtra has announced penalties for app taxi drivers who cancel rides after accepting them. Do you believe your state government should introduce a penalty for drivers cancelling rides on the same lines as Maharashtra government?"

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The question received 22,317 responses. The respondents were allowed to indicate more than option. The largest group of 76% indicated "yes, definitely"; 14% of respondents indicated "yes, but only if passengers are also penalised for unjustified cancellations", 5% of respondents indicated "yes, but only after giving drivers limited free cancellations each day”; and 5% of respondents indicated that they "can't say."

To sum up, 76% of app taxi users surveyed want their state government to introduce a penalty for drivers cancelling rides on the same lines as Maharashtra government

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76% of app taxi users surveyed want their state government to introduce a penalty for drivers
Photo Credit: (Photo: LocalCircles Survey)

What Does The Maharashtra Aggregator Cabs Policy 2025 Say

Under the Maharashtra Aggregator Cabs Policy 2025, a driver who cancels an accepted ride without a valid reason must pay 10% of the fare or Rs 100 whichever is lower. The amount is to be credited to the passenger.

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The penalty rises to 50% of the fare when the booking is for an airport, railway station or hospital, making it five times the standard rate. The higher charge seeks to address the greater disruption that cancellations can cause during time-sensitive or emergency journeys.

The Maharashtra policy also caps surge pricing at 1.5 times the base fare and requires grievance redressal mechanisms. It broadly follows the Union government's Motor Vehicle Aggregator Guidelines 2025, which recommend penalties for unjustified cancellations by drivers as well as passengers.

Karnataka, Delhi and Telangana have either framed or are working on regulations based on the central guidelines. Maharashtra, however, is among the first states to operationalise financial penalties for driver cancellations as part of a broader aggregator policy.

ALSO READ: Maharashtra Govt To Legalise Aggregator-Based Bike Taxi Services From Aug 1

Passengers' Demands

Passengers have also complained that some drivers ask them to cancel bookings, allowing the driver to avoid platform penalties while exposing the customer to a cancellation charge.

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Such cancellations can result in missed flights and trains, delayed office arrivals, higher fares on repeat bookings and added uncertainty during emergencies or late-night travel.

The findings are based on 22,317 responses from app taxi users across 288 districts. Survey platform LocalCircles said all participants were registered and validated users of its platform.

Of those surveyed, 61% were men and 38% were women. Tier-1 districts accounted for 46% of respondents, tier-2 districts for 29%, and tier-3 and tier-4 districts for the remaining 25%

ALSO READ: Viral Video: Taxi Driver Cancels Ride After Man Lights Cigarette, Says 'Smoking Not Allowed In My Car'

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