Mumbai Passengers Face Higher Costs As App-Based Cabs Align With Taxi Rates

As per the MMRTA notification, fares have been standardised at Rs 20.66 per kilometre for non-AC cabs and Rs 22.72 per kilometre for air-conditioned vehicles, reported Business Today.

Aggregators were given until 5 pm on 18 September to implement the revised rates across their platforms.

Source : Freepik

The Mumbai Metropolitan Region Transport Authority (MMRTA) has instructed major app-based transport operators, including Ola, Uber and Rapido, to adopt the same base fare system as the city’s conventional black-and-yellow taxis. The order, issued on September 16, will remain in force until the government formalises separate fare structures for aggregator platforms.

New Fare Framework

As per the MMRTA notification, fares have been standardised at Rs 20.66 per kilometre for non-AC cabs and Rs 22.72 per kilometre for air-conditioned vehicles, reported Business Today.

Aggregators were given until 5 pm on 18 September to implement the revised rates across their platforms. “We had convened a meeting of them (aggregators) and they have agreed to implement it,” confirmed Bharat Kalaskar, additional transport commissioner of Maharashtra, who also holds additional charge of the authority.

The directive permits discounts of up to 25 per cent during low-demand periods and allows surge pricing up to 1.5 times the base fare when demand peaks. Importantly, drivers are to receive 80 per cent of the collected fare under the new arrangement. Representatives from various drivers’ unions were also present during the discussions.

Pressure from Drivers’ Unions

Officials indicated that the decision came after sustained pressure from app-based cab and auto rickshaw unions, who had been demanding a fare hike. Unions had reportedly warned of protests if their demands were not addressed. With the revised fares, passengers are expected to face an increase of at least Rs 5 per kilometre, compared to the previous base rates of Rs 15-16 charged for smaller aggregator-run cabs.

Protests and Threat of Fresh Agitation

Alongside the fare revision, demonstrations have been staged by the Bhartiya Gig Kamgar Manch, a body representing gig workers. The group recently gathered outside the Transport Commissioner’s office in Mumbai, voicing strong opposition against state transport minister Pratap Sarnaik. Protesters carried placards with slogans such as “Ola Uber and Rapido Mantralay” and chanted “Tesla Mantri haay haay”.

The union has further warned of a larger, more aggressive protest on 30 September if the government fails to not only implement a fare hike but also extend licences to bike taxis, a demand that has long been under consideration.

While the move has been welcomed by driver groups seeking better earnings, commuters will feel the pinch of higher travel costs. The fare alignment reflects the ongoing struggle between ensuring fair compensation for drivers and keeping rides affordable for passengers. Until the state government finalises a distinct framework for digital aggregators, Mumbai’s app-based ride-hailing services will be required to mirror the rates of traditional black-and-yellow taxis.

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