Image used for representation.

MUMBAI: Soon, Mumbaikars may no longer be able to take Ola or Uber ’s low-cost cabs for fares such as Rs 6 per km— which is cheaper than an autorickshaw ride. For, under the City Taxi Scheme unveiled on Saturday, the state government has, in principle, decided to fix the minimum fares to create a level-playing field for the Kaali Peelis and fleetcabs.

This move could be a big setback to the cab aggregators. “If the government fixes a higher minimum fare, commuters will end up paying more for rides and this could also affect the cab business," said an official from a cab aggregator.

Chief minister Devendra Fadnavis may take the final call on minimum and maximum fares for cab aggregators after a four-member panel studies the issue and suggests such fares, sources said. As the entire process could take up to two months, citizens can enjoy the benefits of competitive fares till then.

A section of commuters has opposed the government interference in controlling fares, which were competitive, saying that Ola and Uber provided comfortable AC cab rides at affordable rates. They pointed out that these cabs were available round the clock unlike the Kaali Peeli taxis.

Meru Cab CEO Nilesh Sangoi told TOI on Sunday he has demanded that surge prices be capped at 1.5x (1.5 times the original fare). "We don't favour surge prices which are three to four times the minimum fare. At the same time, we are also opposing predatory pricing and want the minimum fare, which is as low as Rs 6, to be raised," he said adding that Meru will make a representation before the fare fixation committee. A senior TabCab official also said "predatory pricing" would be the main focus in the company’s petition to the committee. "You cannot offer extremely low fares to kill the competition,'' the official said.

Sources in Uber and Ola clarified that the firms did not support "predatory pricing" and offered competitive rates to its customers.

