Ola, Uber and Rapido reduce base fares in Karnataka after state govt intervenes

The base fare on a trip was changed from Rs 30 to Rs 60 last month (Representative image)

Ola, Uber and Rapido have reduced their base fare to Rs 30 from Rs 60 per ride in Karnataka, with effect from October 8, amid the state transport department’s notice to stop services of all aggregator-run autos in Bengaluru for the next three days due to the surging prices.

The base fare was increased to Rs 60 due to a rise in fuel prices and to increase the income of auto drivers, the companies claim.

The auto fare on any trip in Bangalore comprises three components - base fare, per kilometer fare which is mandated by the government, and a booking/convenience fee that is charged by the aggregator.

The issue arose when the base fare on a trip was changed from Rs 30 to Rs 60 last month, said two industry sources on the condition of anonymity.

“Unlike an auto hailed from the street, booking with aggregators involves a 'pick-up' component. As fuel price changed, pick-up cost went up and it became unviable for drivers to make the pick-ups in absence of any increase. Also, pick-up distances have increased after Covid," said the person cited above.

What changes

While the convenience fee remains constant at Rs 40, the minimum base fare which was increased to Rs 60 is reversed to Rs 30 per ride. Thus, the basic fare for an online ride now will be around Rs 70, which was earlier Rs 100.

“Minimum fare helps incentivise driver and this is shown to the rider up front. Rider willingly books. All the riders have the option to go through offline if they are not willing to take online trips where we have to pay for an additional minimum fare,” said the industry source.

However, the minimum fare is valid for the first 2 km only at Rs 30. After this, the fare changes according to the per km rate of Rs 15. With the standard booking/convenience fee and the per km fee remaining unchanged, the only thing that changes is the minimum fare for the first 2 km.

Ola, Uber, and Rapido did not respond to the official queries sent by Moneycontrol.

Karnataka govt calls running autos illegal

The transport department of Karnataka on October 7 had called the auto services run by the cab aggregators "illegal" under On-Demand Transportation Technology Act 2016.

“As per the provisions under On-Demand Transportation Technology Act 2016 aggregators are given license to provide taxi services only, taxi means a motor cab having a seating capacity not exceeding 6 passengers excluding the driver with public service permit on contract", Transport Commissioner THM Kumar said in a notice issued a day earlier.

While companies were yet to respond to the official, Rapido on October 7 said in a statement that none of its operations in the city is illegal.

"We have received a notice from the Road Transport Authority, and we will be responding to it within the stipulated time," Rapido' spokesperson said.

The allegations being made regarding extra money charged by Rapido on auto taxi fares are completely false, the spokesperson added, further noting that all the fares are determined in accordance with the rates decided upon by the state government.