Maharashtra is now requiring app-based cab and bike-taxi drivers to possess a Maharashtra domicile certificate and a Public Service Vehicle (PSV) badge.
This policy shifts the labor landscape for ride-hailing services by restricting the workforce to state residents. By limiting operations to those with local residency, the government aims to prioritize local employment and increase regulatory oversight of the gig economy.
Transport Minister Pratap Sarnaik said these requirements became effective on Aug. 1, 2024 [1]. The mandate applies to drivers operating via platforms such as Ola, Uber, and Rapido. Under the new guidelines, drivers must provide proof of residency to obtain the necessary permits to operate within the state.
Beyond the residency requirement, the state is implementing the Motor Vehicle Aggregator Rules [2]. These regulations introduce stricter norms regarding trip cancellations and establish higher penalties for violations. While some reports describe these as the "Motor Vehicle Aggregator Rules, 2026" [2], the domicile requirement was set to begin in August 2024 [1].
The state government said the move ensures that only Maharashtra residents operate these services. This is intended to prevent out-of-state drivers from dominating the local market, a move that aligns with broader efforts to formalize the transport sector.
Drivers who fail to produce the PSV badge or the domicile certificate may face penalties under the new aggregator framework. The rules target both traditional four-wheeler cabs and the growing sector of bike-taxis, which have seen rapid adoption in urban centers like Mumbai.
“Maharashtra is now requiring app-based cab and bike-taxi drivers to possess a Maharashtra domicile certificate”
The introduction of domicile requirements represents a protectionist approach to the gig economy, effectively creating a legal barrier for migrant workers. By tying the right to work for ride-hailing apps to state residency, Maharashtra may face a short-term shortage of drivers, potentially leading to higher fares or longer wait times for passengers while the workforce adjusts to the new certification standards.
