The State Transport Authority (STA) in Maharashtra has granted provisional licences to Ola, Uber, and Rapido to operate bike taxi services in the Mumbai Metropolitan Region (MMR). The move comes under the newly implemented Maharashtra Bike Taxi Rules 2025, bringing much-needed regulatory clarity to the sector.
Conditions for Provisional Approval
While the parent companies of Ola, Uber, and Rapido—ANI Technologies, Uber India Systems, and Roppen Transportation—have been approved, the licences are provisional. These firms must apply for permanent licences within a month, ensuring they comply with all prescribed conditions. Smart-Ride’s application was rejected for failing to meet requirements.
Fares and Pricing Model
The STA has fixed bike taxi fares at a minimum of ₹15 for the first 1.5 km, and ₹10.27 per km thereafter. These rates have been derived using the Khatua panel’s formula, the same mechanism used for autorickshaws and taxis. A fare review has also been scheduled after one year.
Comparison with Existing Transport Options
Bike taxis now emerge as a significantly cheaper alternative to conventional transport modes. For instance, passengers currently pay ₹31 for a minimum fare in black-and-yellow taxis and ₹26 for autorickshaws. The new structure makes bike taxis almost 50% cheaper for short trips.
Addressing Past Challenges
The government had earlier prohibited the use of private two-wheelers for commercial app-based rides in 2023. Despite the ban, several players continued operating illegally, leading to FIRs and public complaints about dynamic, unregulated fares. With the introduction of formal rules, the state hopes to regularize the sector, ensuring passenger safety and fair pricing.
What Lies Ahead
The decision is likely to reshape short-distance travel in Mumbai by providing an affordable and fast commuting option. However, success will depend on strict enforcement of licensing norms, ensuring safety compliance, and addressing traffic management challenges in an already congested city.
