Minimum Fare Fixed: Uber, Ola, Rapido Get Provisional Licences Under Maharashtra’s New Bike-Taxi Rules
Minimum Fare Fixed: Uber, Ola, Rapido Get Provisional Licences Under Maharashtra’s New Bike-Taxi Rules
Minimum fare set at ₹15 for 1.5 km; Uber, Ola, Rapido get provisional licences
The State Transport Authority (STA) in Maharashtra has granted approval for provisional licences to the parent firms of app-based taxi aggregators Ola, Uber, and Rapido for bike taxi services in the Mumbai Metropolitan Region and fixed a minimum fare of ₹15 for 1.5 km.
The STA has fixed the minimum fare at ₹15 for the first 1.5 km, with passengers required to pay ₹10.27 per km thereafter. The fare structure was determined using the formula devised by the Khatua Committee, which is also used to calculate fares for auto-rickshaws and taxis.
The decision was finalised at an STA meeting chaired by state transport secretary Sanjay Sethi on August 18, but a formal announcement was delayed until the minutes were signed this week.
In a major development, the transport department confirmed that aggregators such as Ola, Uber and Rapido will be granted provisional licences to operate immediately, with permanent licences to follow upon completion of documentation. But it approved provisional licences for only three companies. Officials said this step was taken to ensure that services can be rolled out without delay.
The new bike-taxi policy, announced in April, applies to all cities in Maharashtra with a population exceeding one lakh. It regulates fares and operations, bringing an end to arbitrary pricing by ride-hailing companies.
Until now, bike taxis largely operated illegally. In recent months, the RTO registered 123 cases against bike taxis in the Mumbai Metropolitan Region (MMR). Of the four applications submitted for legal operations in MMR, only three received approval. The STA rejected Smart-Ride’s application for failing to meet required conditions.
Transport department officials said the new rules, notified through a government resolution (GR), are expected to bring relief to commuters while ensuring fair regulation of the sector.
