App-based cab fares set to soar after drivers' protests

Time of India

04-08-2025

While speaking with Mirror, a source requesting anonymity, confirmed that the prices of Ola and Uber are set to increase, with the base fare per kilometre now capped at ₹20. This move comes in the wake of high-voltage protests by thousands of drivers demanding better earnings and fare rationalisation. A sources from the Transport Department confirmed that the private cab aggregators have come to the terms of price hike and soon a new rates will be declared.
The decision follows weeks of widespread disruption to commuter services, as drivers staged indefinite strikes and rallies, particularly affecting key transit hubs such as airports and railway stations. The protests, spearheaded by various driver unions including the Maharashtra Gig Kamgar Manch, highlighted grievances over unsustainably low earnings, high commission charges by aggregators, and the lack of a robust regulatory framework by the app-based cab services.
While the exact implementation date and further details of the revised fare structure are awaited, sources indicate that the revised fare structure for app-based cabs will be rolled out this week by the Maharashtra transport officials. Following this, the base fare in Mumbai is anticipated to rise from the current ₹10/km to ₹20/km, marking a 50% increase.
Just two days ago, the Nagpur Regional Transport Office (RTO) announced a significant increase in AC cab fares, raising them to ₹28.80 per kilometre. This marks the first revision in AC cab rates in Nagpur in 12 years. The Pune Regional Transport Office has capped the AC cab fares at ₹25 per kilometre.
However, protests are demanding that the Regional Transport Office (RTO) enforce approved rates for AC cabs. While speaking with Mirror, Maharashtra Gig Kamgar President Keshav Kshirsagar stated that drivers are currently being offered a meagre ₹9-₹10 per kilometre by aggregators, a rate they deem unsustainable given their long working hours. The drivers are pushing for the RTO-approved base fare of ₹32 per kilometre for AC cabs to be implemented, arguing that the current rates make it impossible to earn a living wage.
Additionally, Kshirsagar stated, "Rates derived by the Khatua Samiti formula established in 2017 are the only accurate formula that uses all the scientific parameters to decide fares of city rickshaw taxi and cabs. Anything less than that would lead to exploitation of drivers, and more than that would be exploitation of passengers."
A widespread strike by drivers for app-based cab aggregators like Ola and Uber has been significantly disrupting daily commutes across Maharashtra since July 15. The protest escalated sharply on July 18 following the tragic death of driver Saroj Saxena, who died by suicide at his Nallasopara home. Saxena, who lived with his wife, Latika (44), daughter, Shivani (18), and son, Suryansh (15), was a resident of Nallasopara. His death galvanised thousands of drivers, who converged at Mumbai's Azad Maidan on July 18. They subsequently suspended cab services across Mumbai, Pune, and Nagpur. The striking drivers are primarily demanding fare rationalisation, seeking to align app-based rates with those of traditional black-and-yellow taxis, among other grievances. Despite ongoing discussions with the govt, a resolution is yet to be reached.