Mumbai: The Maharashtra government has suggested a significant increase in base fares per kilometre for app-based taxis such as Ola and Uber after protests from driver unions. If enforced, rates will rise by 50%, increasing from ₹16/km to ₹24/km in Mumbai and from ₹12/km to ₹18/km in Pune.
This choice seems to concede to union requests for fare adjustment in line with regulated cab meter rates, which drivers argue do not provide adequate earnings for sustainability. As a result, the availability of low-cost taxi services is expected to decrease in both cities.
Travelers should anticipate a significant increase in fare prices, impacting even brief journeys. The Bombay High Court recently granted an injunction to safeguard Uber operations from interruptions due to protests, highlighting the importance of ensuring safety for drivers and vehicles.
Sources from a top ride-hailing platform voice worries that these major fare hikes, driven by union influence, might reduce demand and eventually negatively impact drivers over time.
The fare increase will certainly render rides much more expensive, with certain journeys experiencing sharp hikes—such as an Andheri to Worli trip (18.9km) now priced around ₹454, up from ₹302, while a ride from Terminal 2 to Vashi (25km) is rising from ₹400 to nearly ₹600. Although intended to boost drivers' income, the increased fares might cause passengers to rethink their travel choices.
