Booked and Cancelled a Taxi in Mumbai? You May Have to Pay Fines Under New Rules From June 2

Beginning June 2, Mumbai will implement new regulations regarding the cancellation of rides reserved through online platforms. It states that you may be required to pay a minor penalty if you book a taxi online and then cancel without a valid cause. The penalty might be Rs 50 or 5% of the total cost of the ride, whichever is lower. The driver will use this money to compensate for their time. If the driver accepts the ride and then cancels, then the executive will be required to reimburse you, the consumer, for the penalty, which is 10% of the fare or Rs 100, whichever is less, reported The Times of India.

The goal of this modification is to try to reduce needless cancellations and make things more convenient for everyone. Additionally, regulators are capping the amount that prices can increase during peak periods, allowing them to rise no more than 1.5 times the average rate. Likewise, discounts cannot exceed 25% of the regular fare during a slow period.

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According to the new regulation, a trip must be at least three kilometres long. At least 80% of the money paid by passengers should go to the drivers. Furthermore, these taxi services must do background checks on their drivers and have robust safety features on their websites and applications, such as emergency contacts and real-time tracking. The taxi service providers have two months to update their apps to comply with these regulations and obtain a new licence.