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Telangana to launch state-backed auto-rickshaw app, hike fares

The Telangana government has committed to developing a dedicated ride-hailing platform for auto-rickshaw drivers and raising fares for the first time in over a decade, averting a threatened indefinite strike.

LSN India · 24 August 2026

Telangana to launch state-backed auto-rickshaw app, hike fares

The Telangana government will develop a dedicated ride-hailing application to support auto-rickshaw drivers, Transport Minister Ponnam Prabhakar announced on Sunday evening. The state IT department will oversee the development of the proposed app, which is expected to operate similarly to existing platforms like Uber and Ola. The government's initiative comes after auto drivers agreed to call off a planned indefinite strike following assurances on multiple demands.

Among the key concessions, the state government has approved a fare hike for auto-rickshaws—the first increase since 2012. Prabhakar said the government would shortly make a decision regarding bike taxis, proposing that only vehicles bearing yellow number plates would be permitted to operate as commercial passenger transport.

Financial support for vehicle modernization has also been announced. Auto drivers in Hyderabad will be eligible to receive Rs 1.50 lakh in financial assistance for retrofitting their diesel and petrol vehicles with electric vehicle mechanisms. Additionally, the minister indicated he would soon reach a decision on a Congress party pledge to provide Rs 12,000 annually to auto drivers, pending further consultations.