Uber India is fearing a bumpy ride ahead in Maharashtra following the state government's decision to implement tougher regulations for ride-hailing service providers. The new rules are also aimed at curbing surge pricing, wherein ride-hailing services increase fares when demand exceeds supply.

The company, which is already facing the ire of regular taxi operators and autorickshaw drivers, has objected to some clauses in the Maharashtra City Taxi Rules 2016, saying they will make operations expensive.

According to the new rules, the ride-sharing apps should ensure half the fleet of cars on the platform are over 1,400 cc engine capacity, a deposit of Rs 50 lakh for 1,000 cars to be paid by ride-hailing services and the price of permits, to be paid for by drivers – Rs 25,000 for cars with less than 1,400 cc engines and Rs 261,000 for those with more than 1,400 cc engines.

Uber's head of public policy in India, Shweta Rajpal Kohli, had written to Chief Minister Devendra Fadnavis, claiming such rules are likely to make the operator's service “expensive and unreliable”.

“This push towards more premium cars take away the freedom and flexibility of drivers to have the vehicle of their choice, forcing them to buy more expensive cars, which will in turn push up fares,” she said.

Uber, which has taken the Karnataka government to court over its On-demand Transportation Technology Aggregators Rules 2016, said the government “appears to be coming up with new requirements on a daily basis, bordering on the absurd”.

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