Mumbai’s transport department is set to issue a show-cause notice to Rapido over allegations that the platform charged passengers significantly higher fares for short-distance auto-rickshaw rides, according to a report by Loksatta – Mumbai. The proposed inquiry follows a passenger’s complaint that a ride from Goregaon station to Oberoi Mall was shown at ₹76 on Rapido, while the metered fare for the same distance was ₹40.
The complaint was raised by passenger Krishna N Singh, who reportedly approached several autorickshaw drivers outside Goregaon station for the journey. The drivers allegedly refused to accept the short-distance trip on the meter. Singh then booked a Rapido auto, which displayed the ₹76 fare.
The transport department has taken note of the complaint and is expected to examine whether the platform’s fare structure complied with applicable rules. A senior department official told Loksatta that a show-cause notice would be issued to Rapido and that further action would follow the inquiry.
The reported fare difference has brought attention to two linked problems in Mumbai’s last-mile transport system: the refusal by some autorickshaw drivers to accept short-distance passengers and the higher prices that commuters may face when they turn to app-based booking services. When a passenger cannot secure a metered ride for a short journey, an aggregator booking can become the only readily available option, even if it costs substantially more.
According to the report, several passengers have complained that Rapido accepts short-distance bookings but charges fares that are double, or more than double, the metered amount. The transport department’s inquiry will need to establish how such fares are calculated, whether passengers are clearly informed about the pricing, and whether the platform’s operations meet regulatory requirements.
The issue also raises questions about enforcement at the street level. Autorickshaw meters and regulated fares are intended to give passengers a predictable price, but refusals for short trips can weaken that protection. In practice, commuters may be pushed towards app-based services not because they prefer them, but because they cannot obtain a conventional autorickshaw willing to make the journey.
The department’s proposed action comes after the Central Consumer Protection Authority reportedly fined Rapido ₹10 lakh in September 2026 over allegations involving dark patterns and pressure on customers to pay more. The report said the app displayed messages encouraging users to pay more to obtain a ride faster. That earlier action may form part of the wider regulatory context as authorities examine the company’s pricing and consumer-facing practices.
The immediate next step is the transport department’s show-cause notice and inquiry into the complaint. Rapido’s response, the department’s findings and any enforcement action will determine whether the reported fare represented a regulatory violation or a pricing practice permitted under the applicable framework.
