Ola, Uber, Rapido Granted Provisional Licences to Operate Bike Taxis in Mumbai

The State Transport Authority (STA) of Maharashtra has granted provisional licences to Ola, Uber, and Rapido to operate bike taxi services in the Mumbai Metropolitan Region (MMR). With this approval, app-based ride-hailing companies can now legally run bike taxis under the newly implemented Maharashtra Bike Taxi Rules 2025. The move is expected to make last-mile connectivity more affordable, with fares starting at just ₹15 for the first 1.5 km.

STA Approves Provisional Licences

According to officials, ANI Technologies Private Limited (Ola), Uber India Systems Private Limited (Uber), and Roppen Transportation Services Private Limited (Rapido) have received approval from the STA. These companies must apply for permanent licences within a month while adhering to all conditions outlined in the Maharashtra Bike Taxi Rules 2025.

Out of four applications submitted in the past two months, only these three were approved. The application of Smart-Ride was rejected for not meeting the eligibility criteria required for operating bike taxis in the region.

Maharashtra Bike Taxi Rules 2025

The new Maharashtra Bike Taxi Rules 2025, introduced through a government resolution, set the framework for licensing and regulating bike taxi services across the state. The rules aim to bring uniformity, ensure passenger safety, and prevent the misuse of private vehicles in commercial ride-hailing services.

Companies receiving provisional licences must demonstrate compliance with safety standards, fare regulations, and rider insurance coverage to qualify for permanent permits.

Bike Taxi Fare Structure in Mumbai

The STA has fixed a minimum fare of ₹15 for the first 1.5 km for bike taxi rides in Mumbai. Beyond this distance, passengers will be charged at a rate of ₹10.27 per km.

These fares were calculated using the Khatua panel formula, the same pricing framework applied for autorickshaws and taxis in Maharashtra. The STA, chaired by State Transport Secretary Sanjay Sethi, approved these fares in its August 18 meeting. The authority also announced that bike taxi fares would be reviewed after one year to reflect inflation and market dynamics.

How Bike Taxis Compare to Other Modes of Transport

Bike taxis present a cheaper alternative to existing urban transport options in Mumbai. Currently, black-and-yellow taxis charge a minimum fare of ₹31, while autorickshaws charge ₹26. In comparison, bike taxis at ₹15 for 1.5 km make for a more economical option for short-distance travel and last-mile connectivity.

This affordability is expected to attract a large customer base, especially daily commuters, students, and office-goers who need quick and budget-friendly rides.

Past Ban and Legal Issues

In January 2023, the Maharashtra government had issued a government resolution prohibiting the use of private or non-transport category two-wheelers for app-based taxi services. Despite the ban, several operators continued to run bike taxi services illegally using private vehicles, often charging dynamic fares much higher than regulated ones.

As a result, the transport department filed FIRs against some bike taxi aggregators for flouting rules. The introduction of clear guidelines under the Maharashtra Bike Taxi Rules 2025 and provisional licensing aims to end such irregularities and bring more accountability into the system.

Industry Implications and Future Outlook

The provisional licences granted to Ola, Uber, and Rapido signal the state government’s intent to regularize bike taxi services in Maharashtra. By setting affordable fares and strict compliance norms, authorities aim to balance consumer affordability with driver safety and legal accountability.

This development is expected to increase competition among app-based mobility providers while creating new opportunities for two-wheeler owners to participate in the organised ride-hailing market. With permanent licences likely to follow after compliance checks, Mumbai may soon see an expansion of legal, affordable, and efficient bike taxi services.

Conclusion

The Maharashtra STA’s decision to grant provisional licences to Ola, Uber, and Rapido marks a major step in legitimising bike taxi services in Mumbai. With a regulated fare system, stricter rules, and strong oversight, bike taxis are poised to become a reliable and cost-effective mobility option for the city’s commuters.