App-based taxi services in Mumbai and Pune are on the verge of becoming significantly costlier, following the Maharashtra government’s recommendation to raise base fares by 50 percent. This move comes after months of protests by cab driver unions demanding better pay and parity with traditional ‘kaali-peeli’ taxis.
What Are the New Proposed Rates?
If implemented, Mumbai’s base fare will increase from Rs 16 to Rs 24 per kilometre, while Pune’s rate will jump from Rs 12 to Rs 18 per kilometre. The fare hike marks a significant policy shift, potentially impacting thousands of daily commuters who rely on services like Ola and Uber.
Why This Hike?
The decision is widely seen as a political response to union pressure. Drivers’ unions have long argued that low fares on aggregator platforms have made it difficult for them to sustain a livelihood. According to officials, this recommendation is the first formal step toward fulfilling earlier government promises to secure a written fare revision commitment from Ola and Uber.
Unions are also pushing for greater transparency in driver earnings and reduced platform commission fees.
Commuter Impact and Mixed Reactions
While the move aims to support driver incomes, it could significantly raise daily commuting costs, especially for short rides. Many commuters have expressed concern over affordability, while others support the idea of fair wages for drivers.
A spokesperson from a major cab aggregator criticized the decision, stating that fare increases driven by pressure may reduce ride demand and ultimately hurt the same drivers it aims to support.
Legal Developments
The Bombay High Court recently issued an interim order to prevent protesting union members from obstructing Uber services, threatening drivers or passengers, or damaging vehicles. The Court has also asked police to ensure protection for app-based drivers, vehicles, and company offices.
What Lies Ahead?
As the state government negotiates final terms with ride-hailing companies, this fare hike could signal further regulatory involvement in app-based mobility. For now, commuters should brace for higher fares, while drivers await better conditions and transparency in earnings.
