Uber Shuttle Ban: A Setback for Mumbai Mobility

A daily commute is a routine task for most. However, in Mumbai, where time is currency and infrastructure under siege, it is a daily test of patience, stamina, and resilience. The journey is not just about time and distance; it is about day-to-day survival. Therefore, the recent crackdown by the Maharashtra government on Uber Shuttle, a mobile-app-based bus transport aggregator, due to regulatory non-compliance, necessitates a deeper investigation. 

While the government justified its action, citing Uber’s failure to receive the mandatory ‘Stage Carrier’ permit under section 72 of the Motor Vehicles Act, the decision inconvenienced thousands of officegoers who had come to rely on this tech-enabled, air-conditioned (AC) bus service for their daily commute. Thus, although the government’s decision to summarily halt Uber Shuttle is technically and legally appropriate, it reflects a systemic malaise: a disconnect between transport policies, governance, urban mobility needs, and the digital innovations that could rectify a flawed system.

BEST No Longer

The Brihanmumbai Electric Supply and Transport (BEST) Undertaking, a municipal subsidiary, serves as both a bus transport provider and an electricity distributor. Once considered India’s best city bus service, BEST has been steadily losing its reputation as well as ridership. From a peak fleet size of 4,700 buses in 2011, the number of BEST buses has dwindled to just 2,175, with BEST owning merely 17 percent, or 437 buses. Private operators run the other 83 percent (2,157 buses) under a wet lease. Despite efforts at modernisation and the introduction of electric buses, the fleet remains woefully inadequate, leading to unreasonably high wait times at bus stops and a steady decline in passengers. 

Although the government’s decision to summarily halt Uber Shuttle is technically and legally appropriate, it reflects a systemic malaise: a disconnect between transport policies, governance, urban mobility needs, and the digital innovations that could rectify a flawed system.

Although BEST services, with highly subsidised tickets, continue to serve a sizeable section of society—particularly low-income commuter groups—as a viable, cost-effective ‘mass’ transport mode, its utility has eroded for a large number of public transport users, especially officegoers. The Undertaking also continues to grapple with severe financial stress, with financial liability of more than INR 9,200 crore, stemming primarily from its transport wing. Despite a fare revision in April 2025, service quality has declined. 

Table 1: BEST Buses in Mumbai—Dwindling Fleet, Falling Ridership

Source: Compiled by the author from various newspaper reports.

A Welcome Demand-Driven Disruption

It was in this growing road-based mass transit vacuum that app-based aggregators stepped in, offering a reliable, punctual, and user-friendly alternative, with cashless, point-to-point rides and guaranteed seating in AC comfort. These services, including Uber Shuttle, Cityflo, and Mylo1, cater primarily to office commuters from far-flung areas such as Thane, Ghodbunder Road, Kharghar, Seawoods, Mira Road, and Panvel. Their subscription models come at a cost not vastly different from a daily combination of suburban trains and auto-rickshaws/taxi rides for first- and last-mile connectivity. Even their route planning has evolved through comprehensive studies of travel patterns and commuter surveys.

Cityflo, for example, currently runs over 150 AC buses serving more than 15,000 daily commuters. The company, launched in 2015, has recently announced fleet expansion with custom-built AC buses in Mumbai. Mylo1, another aggregator, operates on similar routes with a growing user base in Navi Mumbai. Uber Shuttle, in its pilot phase, reportedly operated on over 100 routes across the metropolitan region, registering around 432,000 users.

Chalo: The PPP Model That Works

While private app-based operators have struggled to meet regulatory compliance, ‘Chalo’ has emerged as an example of how the government can integrate private innovators into the municipal mass transit system without losing governance and operational oversight. Chalo—a mobility-tech company—has collaborated with BEST since 2022, allowing commuters to plan journeys, book tickets, know exact bus arrival times, and pay digitally. These features have significantly enhanced the convenience and usability of public bus services. According to a survey by BEST, Chalo buses helped save more than one lakh person-days in just the first three months of operations. 

Chalo works on a performance-based business-to-business (B2B) model, integrating its technology with the existing bus fleet and network, providing an ideal solution for both BEST and commuters. This collaboration has not only improved the user experience but also increased BEST’s ridership, with the company earning revenue through a share of increased ridership and revenue generated from the app. 

Unlike the bus aggregators, Chalo is integrated into the public transport framework, showcasing a successful public-private model. Chalo has announced a 44 percent fleet expansion, operating 100 electric luxury AC buses and 44 low-emission luxury AC buses, each with reclining seats and Universal Serial Bus (USB) charging ports. 

Policy Paralysis and Regulatory Ambiguity

Unlike taxis or contract carriages—which operate on tourist permits—bus aggregators operate fixed routes with app-based booking and dynamic pricing. The lack of a specific licence category for such services in Maharashtra has left them in a regulatory grey zone. Secondly, the action against Uber Shuttle, coming in the middle of the monsoon, was not only ill-timed but also insensitive. During days with heavy rainfall, suburban train services can be disrupted, and BEST is facing challenges to stay operational. Waterlogging and potholes often lead to severe traffic jams. Therefore, the sudden suspension of a vital service that thousands of daily users depend on—without offering any alternative—raises significant concerns. Given how tech-based private transport providers are commendably filling an increasing void in Mumbai created by BEST’s deteriorating services, which Chalo has only marginally addressed, the decision to halt Uber Shuttles under a regulatory compliance issue has, therefore, harmed more than it has helped. 

By discouraging such app-based bus services, the government is missing a critical opportunity to decongest roads, reduce emissions, and improve urban mobility.

By discouraging such app-based bus services, the government is missing a critical opportunity to decongest roads, reduce emissions, and improve urban mobility. For example, Cityflo helped save 73 lakh litres of fuel in 2024-25 and prevented 6,659 tonnes of carbon dioxide emissions by replacing 15 lakh private car trips in Mumbai, Delhi, and Hyderabad. Regular users of the service in Mumbai comprise 75 percent of car owners, while half of them used to drive to work daily.

Notably, these services are popular amongst women, who find them more convenient and safer than other transport modes. They are entirely self-sustained by user demand, requiring no government subsidies. 

Towards a Smarter Mobility Future

Maharashtra must act decisively to update its regulatory frameworks to accommodate new mobility-tech options. Currently, city transport in India operates under the Motor Vehicles Act of 1988, which is regulated by the respective states. This legislation lacks provisions for technology-enabled bus services, viewing them merely as ticket booking agents instead of essential components of the public transport network.. However, states such as Delhi and Karnataka have already begun notifying separate regulatory models for aggregator bus services, recognising their role in bridging urban mobility gaps. Ironically, Uber Shuttles, which invited government wrath in Mumbai, are legally allowed to ply in the national capital since September 2024 under the Delhi Motor Vehicles Licensing of Aggregator (Premium Buses) Scheme 2023. Maharashtra, home to India’s financial capital, cannot afford to lag.

Public-private partnerships in mobility, especially in megacities such as Mumbai, are no longer optional—they are a dire necessity.

A dedicated ‘Bus Aggregator Licence’ with clearly defined operational, safety, and compliance criteria, and standardised implementation in all cities with a population of a million-plus, is an urgent need. Such a framework should include:

• Fixed route permissions

• Emission norms compliance

• Passenger safety protocols

• Standardised, gender disaggregated data collection and sharing with authorities, ensuring data residency

• Fare transparency

Simultaneously, municipal and state transport services must be strengthened—not by shutting out private innovation, but by collaborating with it. Public-private partnerships in mobility, especially in megacities such as Mumbai, are no longer optional—they are a dire necessity.

Dhaval Desai is a Senior Fellow and Vice President at the Observer Research Foundation, Mumbai. 

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