Cab rides from Bengaluru airport have now become more expensive after an increase in airport pick-up fee by 22-40% for app-based aggregators Uber and Ola.
Bengaluru International Airport Limited (BIAL), which operates Kempegowda International Airport (KIA), has increased the airport pick-up fee for app-based aggregators by 22-40% as part of its concessionaire agreement renewal.
Sources told Moneycontrol that Uber’s airport pickup charge per ride has increased from Rs 187.62 to Rs 260.78. Similarly, Ola’s ‘transport hub charge’ per trip increased from Rs 172 to Rs 215. It remains unclear whether BluSmart has increased the charges from Rs 218 per trip.
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“Cab pick-up charges at the airport's Terminal 2 (T2) are higher than at Terminal 1 (T1). For instance, Uber's pick-up fee increased from Rs 187 to Rs 230 at Terminal 1 and from Rs 187 to Rs 260 at Terminal 2. The increase in pick-up fees for both aggregators varies between 22 percent and 40 percent,” said a source.
Cab operators Uber, Ola, and BluSmart account for more than 70 percent of all airport trips in Bengaluru. Ola and BluSmart were unavailable for comment.
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Uber has begun notifying riders about an increased pick-up fee in Bengaluru airport. "For all airport trips taken on Uber, a pickup fee is charged as part of our commercial agreements with airports. This fee is passed on to the airport, Uber does not retain these charges. The pickup fee has recently been increased at the Bengaluru airport, leading to updated fares for these trips” said a spokesperson from Uber in a statement to Moneycontrol.
“For transparency, we are informing our riders about the revised fares for airport trips. The estimated fare for any trip inclusive of our commission, and applicable taxes, is shown upfront at the time of booking to enable the rider to make an informed choice.", the statement adds.
KIA caters to more than a lakh passengers a day. Around 72 percent of passengers disperse through cars and taxis and the remaining 28 percent by buses. BIAL, which operates KIA, in a statement told Moneycontrol: “The authorised cab services operating at KIA are Karnataka State Tourism Development Corporation (KSTDC), Ola, Uber, Refex Mobility, WTI, COR and Blusmart. All commercial partners including ground transport service providers at BIAL are appointed through tenders. The operators are selected through a robust techno-commercial bidding process, and the concession charges to BIAL are derived from their business plan during the tender process itself”
“Ground Transport operators operating from the airport are mandated to follow the license conditions/permits issued by the State Transport Department (STA). On their respective platforms, they engage with drivers/partners using various business models, and the passenger fares are determined in line with the STA-approved tariff from time to time.”, the statement from BIAL adds.
Also, read: Bengaluru airport suspends entry fee levy on vehicles after outrage
In May 2024, BIAL decided to impose an entry fee for both private and commercial vehicles starting May 20. The plan included stay and overstay charges for vehicles accessing the arrival pick-up lanes at Terminals 1 and 2. However, BIAL suspended this move following protests from drivers, backlash from passengers, and online outrage.
Fairfax India Holdings Corp, led by Canadian billionaire Prem Watsa, holds a 64 percent stake in Bengaluru Airport. Siemens has a 10 percent stake, and the Airports Authority of India and the Karnataka State Industrial and Infrastructure Development Corporation each have a 13 percent stake.
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