Kolkata is set to lose approximately 2,500 yellow taxis by March 2025, as a result of a law mandating that taxis older than 15 years must be decommissioned. This decision is based on a regulation aimed at reducing pollution and modernizing the taxi fleet. Taxi associations have raised concerns over the immediate impact on the livelihood of drivers and the city's public transport system, urging the intervention of Transport Minister Snehasis Chakraborty.
The West Bengal Joint Forum of Taxi Associations, a collective of several taxi unions, convened a meeting to discuss the implications of this law. A central issue raised during the meeting was the lack of a fare increase for yellow taxis since 2018. Taxi operators have pointed out that the "base fare" has remained unchanged for six years, despite rising fuel costs, maintenance expenses, and inflation. Associations have called for the Transport Department to increase the base fare to ensure that taxi drivers can cover their operating costs and earn a sustainable income.
Along with the fare issue, taxi associations are concerned about the Transport Department’s handling of permits for new taxis. Currently, no new taxi permits are being issued, and the process for acquiring permits has become increasingly difficult. Associations claim that the department’s slow processing of permits has created a backlog, preventing taxi owners from renewing or replacing their fleets with newer vehicles. This has further strained the ability of taxi operators to keep up with demand, particularly with the impending reduction of the yellow taxi fleet.
The shortage of permits has led taxi associations to request that the government allow the conversion of second-hand vehicles into yellow taxis. The associations are calling for a streamlined process that would allow used vehicles to be issued permits after being converted into taxis. This proposal aims to alleviate the loss of taxis caused by the 15-year-old regulation, helping to maintain a supply of yellow taxis on Kolkata’s streets.
Taxi drivers also face increased challenges due to fines imposed by local police. The associations report that fines for minor infractions are causing financial strain for many drivers, and in some cases, drivers are being forced out of the industry. With an already limited number of taxis in operation, these penalties are seen as contributing to the worsening taxi shortage in Kolkata. Associations are asking for a review of the fine system and more leniency for drivers to avoid further losses.
Kolkata’s taxi fleet currently includes around 2,500 yellow taxis operating during the day, with 90% of the estimated 3,000 taxis running at night lacking proper documentation. Many taxis are also sitting idle at owners' homes due to a lack of drivers or financial viability. In total, around 6,500 taxis are reported to be out of operation, further intensifying the city’s taxi crisis. The lack of available taxis during peak hours and on busy routes has led to an increased reliance on private cab services.
The rise of app-based private cab services such as Uber and Ola has already had a significant impact on the yellow taxi industry. With the impending cancellation of thousands of yellow taxis, associations are concerned that these companies will gain a greater market share in Kolkata, which would further diminish the presence of traditional taxis. The associations argue that while ride-hailing services provide convenience, they do not offer the same accessibility and coverage as yellow taxis.
Taxi associations are also requesting that the government simplify the process for acquiring new permits and reduce the bureaucratic hurdles involved in operating a yellow taxi. Without such changes, they fear that the yellow taxi industry will continue to decline, leaving a significant gap in the city’s transportation network. The associations are also seeking better support from the government to help taxi owners and drivers adjust to the challenges posed by the 15-year rule, including financial assistance and easier access to permits for fleet upgrades.