If new fares are implemented, the base fare will rise by 50 per cent -- from Rs 16/km to Rs 24/km in Mumbai, and from Rs 12/km to Rs 18/km in Pune
The move is widely seen as a government concession to union pressure. File Pic
In fresh talks with Ola and Uber following driver union protests, the Maharashtra government has recommended a sharp hike in the per kilometre base fare for app-based cabs, officials said on Thursday.
If implemented, the base fare will rise by 50 per cent -- from Rs 16/km to Rs 24/km in Mumbai, and from Rs 12/km to Rs 18/km in Pune.
The move is widely seen as a government concession to union pressure, following persistent demands to align app-based fares with regulated 'kaali-peeli' meter rates, which drivers argue are too low to sustain earnings. The result: affordable cab rides could become harder to access in both cities.
Earlier, during mediation, the government had assured driver representatives that it would secure written commitments from Ola and Uber to raise fares. This recommendation marks the first formal step towards that promise.
Daily commuters now face a significant jump in trip costs, with higher base fares expected to impact even short-distance rides.
On July 23, the Bombay High Court issued an interim injunction restraining protestors from obstructing Uber operations, threatening drivers or passengers, or damaging vehicles. The Court also directed police to proactively protect Uber’s drivers, vehicles, and offices from any union-led disruptions.
“This move disregards the interests of millions of everyday commuters who rely on affordable mobility. Fare hikes of this scale, pushed under pressure, risk shrinking demand and hurting drivers in the long run,” said a source from a leading cab aggregator.
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