Ola, Uber, Rapido Directed to Adopt Black and Yellow Taxi Fare Structure in Mumbai

As per the news reports, the Mumbai Metropolitan Region Transport Authority (MMRTA) has mandated app-based aggregators Ola, Uber, and Rapido to follow the base fare structure of traditional black and yellow taxis. This directive comes ahead of separate rate finalisations for the aggregators and aims to bring uniformity in fare pricing across the city.

Aggregators Must Apply Existing Taxi Base Fare Structure

As per an MMRTA letter dated September 16, 2025, app-based firms must incorporate traditional taxi fares in their platforms by 5 PM on September 18, 2025. Non-AC rides will attract a fare of ₹20.66 per km, while AC taxis will charge ₹22.72 per km. 

This move follows growing pressure from unions representing app-based cab and auto drivers who have long argued for fare parity and hikes aligned with market realities.

Driver Revenue Share and Fare Flexibility

The MMRTA decision ensures drivers receive 80% of the fare, which strengthens earning potential amidst rising fuel and operational costs. This directive also allows aggregator platforms to offer 25% discount during low demand and up to 1.5 times surge pricing during peak hours. These provisions offer some operational flexibility while compliance with the standard fare model is maintained.

Read More: Ola, Uber, Rapido Secures Provisional Licences for Bike Taxis in Maharashtra!

Passengers Face ₹5 Hike per Km Compared to Previous Rates

Earlier, app platforms offered fares as low as ₹15 per km for small cabs. Under the new rate structure, users might see a minimum increase of ₹5 per km in urban travel costs. While this aligns fares between traditional and app-based services, it may affect rider affordability in the near term.

Ongoing Protests and Government Scrutiny

Amid the directive, gig worker union Bhartiya Gig Kamgar Manch organised demonstrations opposing government approval of motorcycle taxi licences. Protestors criticised Maharashtra’s transport minister and warned of a larger agitation if bike taxi licences are not revoked and fare hikes are denied for app cabs by September 30, 2025.

Conclusion

The implementation of black and yellow taxi base fares across app-based platforms marks a significant change in Mumbai’s ride-hailing fare mechanism. It provides fare standardisation and increased revenue share for drivers while also inviting concern among regular commuters over rising travel expenses.

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