Why Drivers Are Going Offline

Recently, the TGPWU union sent a letter to the Transport Ministry. Specifically, they claim that platforms like Ola and Uber fix fares arbitrarily. Then, this lack of rules leads to very low pay for drivers. In fact, many workers now struggle to cover their basic fuel costs. Therefore, they are logging out of apps for at least six hours.

Now, driver groups say the 2025 guidelines are not being followed. Next, they want the state to take over fare pricing. After that, they hope to see more stable monthly earnings. Finally, the strike will hit major cities like Delhi and Hyderabad. As a result of this move, ride availability will drop sharply. Still, some local cabs might remain on the road.

The Core Demands for 2026

First, the union wants a set “minimum base fare” for every trip. Then, they ask for a total ban on private vehicles in taxis. After that, they seek to remove Clause 17.3 from the current law. Next, this clause allows apps to cut prices by 50 percent. Finally, they want a seat at the table during all policy talks.

Today, the use of white-plate bikes for commercial work is a huge issue. Thus, licensed taxi drivers feel they are losing cash to unfair competition. In fact, the union wants these private bikes off the apps for good.

Reality Check

Reality Check: Unions claim they want to protect the “poor driver” from apps. Still, many riders complain about drivers asking for extra cash off-app. In 2025, strike calls often led to more surge pricing for users. Therefore, a strike might just make rides more expensive for one day. Meanwhile, the apps often stay silent during these protests to avoid blame. Yet, the 2026 strike feels larger than past small local moves.

The Loopholes

The Loopholes: Many drivers are not part of any formal union group. In fact, thousands will likely stay online to cash in on high demand. Also, the “ban” on private vehicles is very hard for police to check. Therefore, the impact of the strike might vary from city to city.

What This Means for You

Recently, new state-run taxi apps have launched to help local drivers. Now, you should download a few backup apps before tomorrow morning. First, check for local bus or metro routes as a safe bet. Then, try to book your rides much earlier than usual. Next, expect surge pricing if you find a cab at all. Indeed, a backup plan is the best way to travel tomorrow.

Next Steps

Check your ride-hailing app at 8:00 AM tomorrow to see wait times. Then, look for local news alerts to see if your city is hit. Would you like me to find the best alternative transport apps for your specific city?

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Now, in the new rules, the government has allowed them to increase the fare up to twice (2x) of the base fare. However, during less crowded times, the fare will not be less than half (50%) of the base fare.

States get three months’ time

According to the Times of India, the central government has asked all states to implement these new rules within the next three months. The government wants that there should not be much burden on the passengers during peak hours. Also, it has to be ensured that the companies do not compete unfairly with each other by giving too much discount.

New rule for penalty on cancellation

If the driver cancels: If the driver cancels the trip after accepting the ride on the app without giving any valid reason, he will be fined 10% of the fare or a maximum of Rs 100 (whichever is less). This fine will be divided between the driver and the company (aggregator).

If the passenger cancels: If the passenger cancels the booking, a similar penalty will be charged from him.

Insurance is mandatory for drivers

Now, cab companies will have to ensure that all their drivers have health insurance of at least Rs 5 lakh and term insurance of at least Rs 10 lakh.

Who will decide the base fare?

Now auto-rickshaws and bike taxis have also come under the purview of these rules. State governments will fix the base fare for different types of vehicles (taxi, auto, bike taxi).

For example, the base fare of a taxi in Delhi and Mumbai is around Rs 20-21 per km, while in Pune it is Rs 18 per km. If a state has not fixed the base fare, then the companies will have to fix the base fare themselves and inform the state government.

No empty fare

The good news is that passengers will no longer be charged ’empty’ fare. Empty travel means the distance travelled by the driver to pick up a passenger.

This will be charged only in one case: if the distance to pick up the passenger is less than 3 km. Apart from this, the fare will be charged only from the start of the journey to the destination.

New arrangements for passenger safety

It will now be mandatory to install Vehicle Location and Tracking Device (VLTD) in every vehicle. The information about this device should be available to the company as well as the state government’s control center. Companies will have to conduct refresher training courses for their drivers every year.

Drivers with the worst ratings (bottom 5% of drivers, based on the length of time they have been with the company) will have to undergo refresher training every three months. If such drivers do not undergo training, they will not be allowed to work on the company’s platform.

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According to a PTI report, Rapido co-founder Arvind Sanka said that the company will also provide the facility of commuting to and from the metro stations at a fixed fee of Rs 25. He said that we are providing metro ticketing on our platform with the help of ONDC and DMRC.

First ride free for all users

According to the news, we are also making the first ride free for all users who book metro tickets using the Rapido app. Sanka said that Rapido is already providing ticket booking services for Kochi and Chennai Metro in collaboration with ONDC. The company will start providing service at 30 metro stations in Delhi. Sanka said that more than 8 lakh customers use Rapido every day and 40 percent of them are women drivers.

Also Read: Train Cancelled: Railways has canceled many trains on these routes for the next few days. see the list

Pick-up and drop-off points at select metro stations

The Rapido chief said that about 1 lakh customers are already using this service to commute to and from the metro stations. The company will set up pick-up and drop-off points at select metro stations in Delhi. Vikas Kumar, Managing Director, Delhi Metro Rail Corporation (DMRC), said that the collaboration with Rapido through ONDC is a progressive step towards providing a more connected and accessible travel experience to Delhi’s passengers. Sanka said that the initiative taken by my team, Rapido and ONDC in a way furthers our vision, which is to make customer experience in Delhi Metro a customer delight.

Earlier, ride-hailing platform Uber also introduced metro ticketing on the Uber app, powered by the Open Network for Digital Commerce, starting with the Delhi Metro. After Delhi, three more cities across India are expected to go live in 2025, Uber said, adding it will soon launch B2B logistics through the ONDC network, a solution that will allow businesses to request on-demand logistics from Uber’s delivery network, without needing their own fleet.

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In compliance with the order, bike taxi service options were removed from ride-hailing apps like Ola, Uber and Rapido.

Karnataka Transport Minister Ramalinga Reddy confirmed this and said that the companies will have to follow the court’s decision. Reddy told PTI-Bhasha, “Three months ago the court had ruled that bike taxis are illegal. First the court had given six weeks and then on request gave another six weeks. Now that 12 weeks have passed, the companies will have to follow the High Court order.”

A division bench of the Karnataka High Court on Friday refused to stay an earlier order of a single judge suspending bike taxi services in the state.

Also Read: Ola-Uber-Rapido rides will be cheaper, government may take a big decision

A division bench of Acting Chief Justice V Kameswar Rao and Justice Srinivas Harish Kumar was hearing appeals filed by Uber India Systems Pvt Ltd, ANI Technologies Pvt Ltd (which operates Ola) and Reopen Transportation Services Pvt Ltd (which operates Rapido).

The companies had challenged the April 2 order directing them to stop bike taxi services within six weeks. The deadline was later extended to June 15. The single judge had said that such services cannot operate unless the state government notifies specific rules and guidelines under the Motor Vehicles Act.

The division bench issued notice to the state government and other respondents and fixed the next hearing for June 24. Meanwhile, Tanveer Pasha, president of Ola Uber Drivers and Owners Association, demanded strict implementation of the order. He said, ‘The government should seize the motorcycles running illegally and take legal action against the violators.’

Rapido in a statement cited the court’s decision and expressed concern for riders. It said, “Even though we are not the initiating party in the ongoing case, we are engaged as a responsible stakeholder. This is a challenging time for our drivers, many of whom depend on bike taxis as their primary source of income.”

Uber has also confirmed to suspend its bike taxi services from June 16. The company said, ‘This decision affects thousands of riders and drivers who rely on bike taxi service every day. We will continue to work closely with the Government of Karnataka to help develop a progressive policy that ensures safe, accessible and affordable mobility for all.’

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Rapido removed ‘bike taxi’ option, now started ‘parcel service’

Moneycontrol’s spot check revealed that Rapido has removed the “Bike Taxi” option from its app and added a “Bike Parcel” service in its place. A message is also visible on the app. “From June 16, 2025, our bike taxi service has been temporarily stopped in compliance with the orders of the High Court in Karnataka.” Rapido said in a statement, “We are proud of the bike taxi facility, but we respect the court and will fully comply with its orders. We hope that this service can be started again in the future.”

The option is still visible on Ola and Uber

Although Rapido has stopped the service, the option of bike taxi is still available on apps like Ola and Uber, although the waiting time seems to be high. Both the companies have not given any reaction on this. Karnataka Transport Minister Ramalinga Reddy said, “We have clearly stated our stand in the court and we will follow the order and take strict action on it.” The Transport Department has said that necessary legal action will be taken against the companies that violate this ban.

Namma Bike Taxi Association expressed concern

In protest against this decision, Namma Bike Taxi Association has written a letter to Chief Minister Siddaramaiah and Congress leader Rahul Gandhi and demanded withdrawal of this decision. The organization has warned that this ban will put the livelihood of thousands of gig workers across the state at risk. State Labor Minister Santosh Lad told Moneycontrol, “We have not yet received any official letter from the Bike Taxi Association. Anyway, the decision in this matter is taken by the Transport Department, the Labor Department has no role in it.”

The next hearing of the case is on June 24

Bike taxi companies Ola and Uber have filed a petition in the High Court against this ban. The order of a single judge on April 2 has been challenged in which the service was banned on the basis of absence of rules. The next hearing of this case will be on June 24.

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Earlier, on May 26, the Delhi High Court had stayed the notice issued by the Delhi Transport Department to stop bike taxi services. A division bench of Justice Suresh Kumar Kait and Justice Nina Bansal Krishna also directed the Transport Department not to take any coercive steps against Rapido and Uber until the policy is formulated.

Aggregators like Uber, Rapido were given notice

In February this year, the transport department had issued a public notice to aggregators like Uber, Rapido and Ola to stop their bike taxi services with immediate effect. The transport department said in the notice “It has been brought to the notice that two-wheelers with non-transport (private) registration mark/number are being used for carrying passengers on hire which is a commercial operation and as per the Motor Vehicles Act, 1988 is a violation.

” Rapido and Uber filed a petition in the High Court against the Delhi government’s decision, on which the High Court issued a show cause notice on 21 February. The Delhi government said that the aggregators were running two-wheelers without license and permit.

Delhi government challenged the order

The Delhi government had challenged in the Supreme Court the May 26 order of the Delhi High Court, which had asked not to take any coercive action against bike-taxi operators until the final policy was notified. The Supreme Court on Monday heard two petitions filed by the Delhi government

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In a circular issued by the Delhi Transport Department, strict action has been warned against people carrying passengers on bikes. It has been said in the notice that for not doing so, a heavy fine will be imposed on the accused, as well as his driving license will also be suspended.

10 thousand rupees will be fined

According to the notice issued by the Delhi government, under the Motor Vehicle Act 1988, carrying passengers on any kind of two wheeler is a punishable offence. If found doing so, he will have to pay a fine of Rs 5,000 in the first instance and Rs 10,000 in the second instance. If the fine is not paid, then there will be a jail term of up to one year and the bike will also be seized.

Rs 1 lakh penalty on aggregator

Before taking out this notice, the Kejriwal government had issued a warning to Ola, Uber and Rapido running bike taxis in the city without permission. The government had said that carrying passengers on bike-scooter (Bike Taxi) is a violation of the Motor Vehicle Act, for which a fine of up to Rs 1 lakh can be imposed on the aggregator ie the companies running it. Along with this, the license of the driver driving that bike-scooter can also end for 3 months.

This issue is going on in many states

There is a tussle between various state governments and the companies running it on the issue of running bike taxis without permission. Maharashtra government had banned Rapido company for starting bike service without permission. The company then sought a license from the government, but the state government refused, calling it a violation of rules. After which the company filed a petition in the Supreme Court. The Supreme Court refused to give any relief to the company in this matter.

Rest of the states can also take a decision

Now, due to the ban on all the three major bike taxi companies by the Delhi government, it is believed that similar tough decisions may come in other states as well. Along with this, the questions related to this bike taxi can take a more vocal form. Explain that in the year 2019, amendments were made in the Motor Vehicles Act, in which there was also a provision that no aggregator can work without a valid license.

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Actually, Rapido did not take license from the state government to operate its service in Maharashtra. During the hearing of this case, the High Court issued a strict order on Friday itself to stop the company’s service till 1 pm and to give confirmation in this regard to the court by 1.15 pm.

Kotr said that the app should be suspended for all services till one o’clock. After this, the court should be given confirmation in this regard by 1.15 pm. Significantly, the company does not have any kind of license related to Rapido’s delivery and bike taxi service for services in Maharashtra.

Has applied for the license In this regard, the lawyers appearing in the court on behalf of Rapido argued that the startup has applied for the license and permission is yet to be received from the state government. In such a situation, the services should not be stopped. But a bench headed by Justice GS Patel and Justice SG Dige said that the license process is still at the application stage, which proves the operation of this service illegal. Along with this, the court has also summoned the reply from the state government for not preparing a policy for running bike taxis.

How long will it not last?

The court has fixed the date of the next hearing on January 20. According to the order of the court, a decision regarding the operation of Rapido will be taken only after the next hearing. Significantly, this is a double whammy for the Rapido. Earlier, Rapido had to face problems in Karnataka. App-based auto aggregators like Ola and Uber, including Rapido, are at loggerheads with the Karnataka Transport Department over commission and license fees.

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