(Economy & Transport – Gig Economy and Urban Mobility)
As part of its revised guidelines, the Central Government has clarified that the base fare set by cab aggregators such as Ola, Uber, and Rapido should cover at least 3 km, to account for “dead mileage.”
What is Dead Mileage?
Dead mileage refers to the distance travelled by a commercial vehicle without any passengers or cargo, especially:
When a cab travels to the passenger’s pickup point after accepting a ride.
When returning empty from a drop-off point to a location where demand exists.
It involves uncompensated fuel usage, time, and operational cost for the driver or operator.
Why It Matters in Urban Transport Pricing:
Affects driver earnings, especially in cities with high traffic or uneven demand distribution.
Including dead mileage in the base fare calculation ensures:
Fair compensation for platform-based gig workers.
Operational sustainability of ride-hailing services.
Encourages better ride-matching algorithms and reduced fuel wastage, aligning with sustainable mobility goals.
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