The Maharashtra government has proposed a major increase in base fares for app-based taxis. The change comes after several discussions with Ola and Uber. The new fares are expected to make daily travel costlier for many commuters in Mumbai and Pune.
According to officials, the new plan will increase the standard fare in Mumbai by 50 percent. The current rate of INR 16 per kilometre will go up to INR 24. In Pune, the fare will increase from INR 12 to INR 18 per kilometre.
This step follows long-standing protests by drivers' unions. They have been asking for equal pay for kaali-peeli taxi drivers and app-based cab drivers. Many drivers say that the present fares are too low to earn a living. The unions had also demanded that the app-based fares match the rates of traditional taxis.
As per sources, the government had earlier promised to get a written commitment from Ola and Uber to raise fares. This proposal is the first step towards that promise. The fare increase is likely to affect thousands of people who use these services every day. Even short trips could become more expensive.
On July 23, the Bombay High Court gave an interim order against protestors. The court told protestors not to block Uber’s operations or threaten drivers and passengers. The court also asked the police to protect Uber’s staff, vehicles, and offices from union-led actions.
Some believe that the fare proposal is a result of pressure from driver unions. The demand for fair wages has been a key issue in past meetings between the government and driver groups.