Ola, Uber, Rapido Asked to Justify Fare Structure Amid Rising Discontent Over Cab Charges in Maharashtra

Pune, 23rd July 2025: The Maharashtra Transport Commissioner’s office has directed app-based mobility giants Ola, Uber, and Rapido to submit a detailed explanation of how they determine fare pricing for cabs and auto-rickshaws, amid continued tensions with gig worker unions over inflated ride charges.

This directive was issued following two rounds of discussions on Tuesday between senior officials, company representatives, and leaders of transport unions. The meetings come in the wake of a temporarily paused strike by members of the Indian Gig Workers’ Front, who had threatened to resume protests over fare-related disputes.

“We have asked these companies to provide written clarification on how fares are calculated across different cities,” said Additional Transport Commissioner Bharat Kalaskar. “They must explain how their pricing varies from the rates approved by Regional Transport Authorities (RTA), particularly for both taxis and autorickshaws.”

Drivers across the state have been demanding fare regulation in line with RTA-approved structures. In Pune, for instance, the fixed tariff is ₹75 for the first 3 km, followed by ₹25 per additional kilometer. However, app-based ride fares are often much lower due to dynamic pricing and discounts—something unions claim is unsustainable for drivers.

Kalaskar further stated that the aggregators have been asked to reactivate driver IDs that may have been blocked for adhering to government-approved rates. “If drivers are penalized for charging as per RTA fares, their accounts should be restored immediately,” he added.

For commuters, however, the inconsistent fares continue to cause confusion and frustration. “This situation should have been controlled earlier,” said Kalpana Seth, a bank employee from Kondhwa. “Authorities were reluctant to act, fearing a commuter backlash. But now passengers are the ones paying the price—literally.”

If the RTA-based fare system is enforced, a 10-km cab ride in Pune would cost a minimum of ₹249.50, as compared to the current average fare of around ₹175 on non-surge Uber Go rides. The state government is reportedly working to implement this model soon.

Keshav Kshirsagar, President of the Maharashtra Kamgar Sena, said the transport department has assured them that app aggregators will submit a written commitment to adopt the RTA fare structure. “They will also mention the date from which the updated fares will reflect in the apps,” he said.

However, not everyone agrees with the state’s plan. Prashant Sawardekar, President of the Indian Federation of App-Based Transporters, expressed concern over conflicting guidelines from the central and state governments.

“The Centre allows surge pricing up to 50% of the base fare, which is ₹48 per km,” Sawardekar said. “This isn’t part of the state’s draft policy, which creates confusion and may impact driver earnings.”

Transport officials confirmed that a revised policy for app-based transport aggregators is in the pipeline and expected to be announced soon. Until then, the pricing stalemate between gig workers, commuters, and companies remains unresolved.