Hyderabad, 2nd July 2025: The Telangana Gig and Platform Workers’ Union (TGPWU) welcome certain provisions in the newly announced Motor Vehicle Aggregator Guidelines 2025, but express serious concerns regarding the lack of uniform fare regulations, unchecked surge pricing, and gaps in enforcement that continue to hurt both customers and drivers across India.
Positive Steps Appreciated by TGPWU:
Mandatory health insurance of ₹5 Lakh and term insurance of ₹10 Lakh for all app-based drivers.
Drivers’ right to work with multiple platforms — essential for protecting income opportunities.
Focus on induction training, background verification, and vehicle safety to safeguard passengers and drivers.
Inclusion of Divyangjan-friendly vehicles and targets for electric mobility promote accessibility and sustainability.
Major Concerns Raised by TGPWU:
Why No Uniform Fare Policy Across India?
The Government of India continues to allow state-wise fare policies and uncontrolled aggregator pricing models. TGPWU strongly demand a national, uniform fare structure to protect passengers from unpredictable pricing and ensure fair earnings for drivers.
Surge & Peak Pricing – Hurting Both Sides
The guidelines allow fares to increase by 2x, even 3x during high-demand periods. In reality:
Passengers suffer from exorbitant ride costs during emergencies, festivals, rains, or peak hours.
Drivers suffer because even though fares increase, aggregators retain a large share, and drivers face backlash from angry customers.
Such pricing increases public frustration towards drivers, leading to verbal abuse, negative ratings, and even physical threats.
Customers and Drivers Both Want Fair, Transparent Fare Regulation It’s not just the unions — even drivers are demanding that state governments fix minimum and maximum fares to stop arbitrary pricing by app companies. The current model benefits only the aggregators, while customers overpay, and drivers receive inconsistent, unfair payments.
Illegal Bike Taxi Operations Must Be Stopped We remind the Telangana Government that bike taxis operating on white number plate (private) motorcycles remain illegal. These services compromise passenger safety, evade taxes, and hurt the livelihood of licensed taxi, auto, and bike drivers.
High Financial Burden on Aggregators Risks Being Passed to Drivers ₹5 Lakh license fees and up to ₹50 Lakh security deposits may be unfairly shifted onto drivers through increased commissions or hidden deductions.
Lack of Worker Representation
Despite representing thousands of drivers, unions like IFAT and TGPWU have not been formally consulted in framing these guidelines. This undermines democracy and ignores the voices of those most affected.
Demands from TGPWU:
- The Government of India must introduce a uniform, transparent fare structure across states to protect passengers and ensure predictable, fair earnings for drivers.
- Immediate ban on illegal bike taxi operations using private number plates.
- Telangana and others Governments must not implement these guidelines blindly — worker unions like TGPWU must be part of any monitoring and enforcement process.
- No surge pricing beyond reasonable limits; customers and drivers should not be victims of price exploitation by aggregator algorithms.
- Gig workers must be recognised under labour laws with proper social security and dispute resolution mechanisms.
Quote from Shaik Salauddin:
“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.”