Gig Worker Unions Call For Fixed Fares In New Aggregator Guidelines For Ola, Uber

Gig worker unions Telangana Gig and Platform Workers Union (TGPWU) and the Indian Federation of App-based Transport Workers (IFAT) issued a press release addressing the indian government’s new Motor Vehicle Aggregator Guidelines for ride-hailing apps like Ola, Uber and Rapido. The unions criticised the Guidelines for not offering a nationwide uniform fare structure.

“IFAT and TGPWU strongly demand a national, uniform fare structure to protect passengers from unpredictable pricing and ensure fair earnings for drivers,” said the press release (internally reviewed by MediaNama).

The Ministry of Road Transport & Highways had released a set of guidelines for Motor Vehicle Aggregator Guidelines like Ola, Uber and Rapido on July 1. The Guidelines lay down a set of rules for aggregator platforms meant to ensure passenger safety and good working conditions for drivers. Notably, the Guidelines allowed aggregators to offer rides through non-commercial two-wheelers, or bike taxis, and permitted dynamic pricing as well.

“When fares increase by 2x or 3x, passengers blame drivers, but the truth is, both drivers and passengers are suffering while only app companies profit. We need fixed, fair fares across India, strong state enforcement, and an end to illegal operations like bike taxis without yellow plates. Only then can we ensure safety, dignity, and fairness for both customers and workers,” said Shaik Salauddin, Founder of TGPWU.

He asked the government to ban bike taxis that use private number plates, introduce a uniform fare structure across the country, include gig worker unions in policy-making, ban surge pricing beyond “reasonable” limits and recognise gig workers under labour laws.

Stop Surge Pricing Demand from Gig Worker Unions:

“The aggregator shall be permitted to charge a minimum of 50% lower than the base fare and a maximum dynamic pricing of two times the base fare,” said the guidelines.

The TGPWU and IFAT criticised surge pricing as hurting both consumers and drivers, as the former had to pay more during peak hours while the latter had to face passenger backlash. They added that since aggregators retained a large share of the fares, driver incomes remained inconsistent despite the customer paying more.

Urge to Ban Bike Taxis:

“The State Government may allow aggregation of non-transport motorcycles for journeys by passengers as shared mobility through aggregators, resulting in reduced traffic congestion and vehicular pollution, along with providing, inter alia, affordable passenger mobility, hyperlocal delivery, and creating livelihood opportunities,” said the guidelines.

Importantly, the Karnataka High Court had ordered a statewide suspension of bike taxi operations in April, after the state government argued that deploying bikes registered for personal use for commercial purposes is illegal. It also prohibited the operation of bike taxis unless the State Government notified relevant guidelines under Section 93 of the Motor Vehicles Act (MVA), 1988, and its subsequent rules.

The Unions argued that bike taxis with white number plates (non-commercial) were illegal and claimed that they may compromise passenger safety and hurt the incomes of employed cab drivers.

The press release also cautioned that the Rs 5 lakh license fee placed on aggregators by the Guidelines may be shifted onto the drivers through hidden costs or increased commissions. It also criticised the government for not consulting gig worker unions while drafting the guidelines.

Positive Steps Appreciated by the Gig Worker Unions:

Gig worker unions are not entirely critical, as they commended the guidelines for taking steps in support of app-based drivers. These include:

• Mandatory health insurance of Rs. 5 Lakh and term insurance of Rs. 10 Lakh for drivers.
• Drivers have the right to work with multiple platforms.
• Aggregators to carry out induction training for drivers, conduct background verification and ensure vehicle safety.
• Aggregators, at the direction of the state government, must create a disability-friendly fleet and set targets to increase electric vehicles.

Also Read:

• IAMAI Urges Government to Act Quickly as Bike Taxis Face Shutdown in Karnataka
• Does Karnataka’s ban on e-bike taxis call for a central regulation on cab aggregators?
• Ban bike taxis: Telangana Gig and Platform Workers’ Union write to the State Transport Ministry
• IAMAI Suggests Adjustments to Delhi Transport Portal for Better Compliance
  

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