Uber, Ola and Rapido get nod to operate bike taxis in MMR

According to officials, the decision was made at a meeting chaired by State Transport Secretary Sanjay Sethi on August 18 and approved on Monday.

Uber, Ola and Rapido get nod to operate bike taxis in MMRIn the past two months, four applications for bike taxis in MMR were received by the transport department. (Source: File/ Representational)

The State Transport Authority (STA) has approved provisional licences to Uber, Ola and Rapido to run bike taxi services in the Mumbai Metropolitan Region (MMR) and set a minimum fare of Rs 15 for 1.5 kilometres.

According to officials, the decision was made at a meeting chaired by State Transport Secretary Sanjay Sethi on August 18 and approved on Monday. The fares have been calculated with the use of the Khatua Committee formula, which has already been implemented for calculating autorickshaw and taxi fares. After the minimum distance, Rs 10.27 per kilometre will be charged from passengers. The STA also approved the review of fares after one year.

As per the order, ANI Technologies Private Limited (Ola), Uber India Systems Private Limited (Uber), and Roppen Transportation Services Private Limited (Rapido) have been permitted to operate with provisional licences. The firms need to apply for permanent licences in a month, complying with the terms and conditions of the Maharashtra Bike Taxi Rules, 2025.

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In the past two months, four applications for bike taxis in MMR were received by the transport department. Smart Ride’s application was turned down because it did not meet the required conditions.

The Maharashtra government had notified the “Maharashtra Bike Taxi Rules, 2025” on July 4 last year through a Government Resolution (GR). As per the GR, bike taxi and pooling services can be offered in cities with a population of over one lakh. “The fares have been based on the formula of the Khauta Committee, a four-member panel constituted in October 2016 by the Maharashtra government to determine the fare structure for metered taxis and autorickshaws,” the GR stated.

In January 2023, the government had banned the use of private or non-transport category two wheelers in app based services. Even after the ban, some aggregators operated in Mumbai and other areas of the state on private bikes. FIRs were filed against some operators for illicit services and for collecting dynamic fares.

Bike taxi rates are considerably cheaper than other modes of public transport in the city. The passengers are now paying at least Rs 31 for kaali peeli (black and yellow) taxis and Rs 26 for autorickshaws. Lower rates are anticipated to give commuters, especially short-distance passengers, an extra option for transport.

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The officials said provisional sanction is the initial step towards making app-based two-wheeler taxi services in Mumbai operational, which have been functioning in a legal disputes so far. With the requirement of permanent licences within a month and establishing operations on the 2025 Rules, the state government seeks to introduce standardisation in fares and conditions of services throughout the state.

Bike taxis have been debated in Maharashtra for many years as a cheap and versatile mode of transport, particularly for short distances in crowded cities. However, their introduction was met with opposition from established taxi and autorickshaw unions. Officials mentioned the latest sanction will enable services to run legally under a regulated regime.

“This decision is a win for commuters and earners alike. People across the State have embraced bike taxis for their speed and value, and today’s approval allows us to serve them at scale while creating thousands of flexible earning opportunities. We are confident that the Transport Department will expedite the registration process for commercial bikes and enhance last mile connectivity,” said an Uber Spokesperson.

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