Mumbai: Fare Hike Demand Triggers Scrutiny; Ola, Uber Asked To Explain Pricing

As Mumbai recovers from the disruption caused by the recent strike by cab and auto drivers, the Transport Commissioner’s office has demanded a written explanation from app-based aggregators Ola, Uber, and Rapido on how they calculate their fares.

Transport Dept Meets Unions, Aggregators Separately

Additional Transport Commissioner Bharat Kalaskar told The Times of India that two rounds of meetings were held on Tuesday, one with drivers' union leaders and another with representatives of cab aggregator firms.

“We’ve asked Ola, Uber and Rapido to provide a written clarification on their fare determination process across cities. We also want to understand how their app fares differ from the RTO-approved rate structure,” Kalaskar said.

Strike Temporarily Suspended, Pressure on Government to Act

The strike began on July 9 and lasted three days, severely impacting commuters in Mumbai and other cities across Maharashtra. Services resumed after drivers paused the strike on Saturday, giving the state authorities time to address their concerns. The deadline for action was set for Tuesday.

Drivers’ Demands: Fare Rationalisation, Welfare and Policy Reform

The drivers have submitted a charter of demands, which include:

Bringing app-based cab fares on par with conventional taxi fares

Banning bike taxis entirely

Capping permits issued for cabs and rickshaws

Establishing a welfare board for gig drivers

Enacting the Maharashtra Gig Workers' Act, similar to laws in other states

RTO Fares vs App Fares: Big Difference, Bigger Dispute

The government suspects that app-based fares are often lower than RTO-approved rates, especially during non-peak hours. For instance, in Pune, RTO fares dictate ₹75 for the first 3 km and ₹25 per km thereafter — meaning a 10 km ride costs about ₹250. The same ride on Uber, however, averages just ₹175.

This gap in pricing has become a major point of contention, especially as the aggregators often raise prices during peak hours using surge pricing algorithms.

Aggregator Cabs Policy 2025: What’s Coming

The ongoing dispute comes just as Maharashtra plans to implement the Aggregator Cabs Policy 2025, which aims to introduce greater regulation and driver welfare measures:

Fare structures will be monitored and capped

Apps will not be allowed to charge more than 1.5x the base fare during peak hours

Drivers may be penalised for ride cancellations

Mandatory accidental insurance and welfare provisions for drivers

news