The Mumbai Metropolitan Region Transport Authority (MMRTA) has issued a directive mandating leading app-based taxi and auto-rickshaw aggregators, including Uber, Ola, and Rapido, to align their base fare structures with the city’s traditional black-and-yellow taxis.
This order, communicated through an official letter dated September 16, 2025, requires aggregators to implement the fare structure of ₹20.66 per kilometre for non-AC vehicles and ₹22.72 per kilometre for AC vehicles with immediate effect.
The change aims to bring parity across transport providers until distinct government-approved fare rates for app-based services are finalised. Aggregator platforms have consented to incorporate these rates by September 18.
Fare details, driver benefits, and stakeholder reactions
The MMRTA’s order allows for a 25% discount during periods of low demand and a surge pricing cap of 1.5 times the base fare during peak hours. To safeguard driver earnings, the directive mandates that 80% of collected fares will go directly to drivers, with companies retaining the remaining 20%. Bharat Kalaskar, MMRTA secretary and additional commissioner of Maharashtra, confirmed the decision, noting that discussions involved aggregator firms and drivers’ representatives.
However, this mandated fare hike represents an increase of at least ₹5 per kilometre compared to current app rates, which hover around ₹15 to ₹16 per kilometre for smaller vehicles, potentially impacting affordability for commuters. The change follows mounting pressure from driver unions, who had threatened agitation if fare hikes were not implemented.
Notably, the Bhartiya Gig Kamgar Manch, representing gig workers and app-based drivers, staged protests in Mumbai, vocally opposing the government’s parallel licensing of motorbike taxis and demanding further fare revisions. The union warned of intensified protests scheduled for September 30 if their demands remain unaddressed.
Context: Regulatory balancing act in Mumbai’s urban transport
This fare alignment order marks a significant intervention by transport authorities amid ongoing tensions in Mumbai’s evolving urban mobility sector. The government aims to balance fair earnings for app-based drivers, transport affordability for passengers, and regulatory consistency with traditional taxi services.
The decision builds upon the Maharashtra Bike Taxi Rules, 2025, which established separate fare guidelines for bike taxis, including a fixed base fare of ₹15 for the first 1.5 kilometres. These emerging regulations come after the government clamped down on unlicensed bike taxis amid concerns over pricing volatility and passenger safety.
Industry experts suggest that while app-based platforms offer convenience and innovation, regulatory oversight is essential to prevent exploitative pricing and ensure a level playing field. The directive also underscores the influence of driver unions in Mumbai’s transport policy decisions as they negotiate for livelihood security amid disruptive market changes.
The Logical Indian’s perspective
This directive reflects broader challenges in urban transport where technology, labour rights, and consumer interests intersect. While app-based mobility solutions have transformed city travel, transparent and equitable fare policies are crucial to protect both drivers and passengers.
The Logical Indian supports regulatory measures that promote fairness, dignity, and sustainability within the gig economy. A uniform fare structure can foster a more inclusive ecosystem where innovation coexists with empathy and respect for all stakeholders.
It remains imperative for government agencies, transport companies, and worker unions to engage in continuous dialogue to craft adaptive, balanced policies that benefit Mumbai’s millions of daily commuters.
