Moneycontrol PRO
HomeNewsTechnologyKarnataka government revises cab fares, including Ola & Uber

Karnataka government revises cab fares, including Ola & Uber

Transport department has announced a uniform fare structure for all cabs, including those operated by Ola and Uber, by categorising vehicles into three classes based on the cost of the vehicle.

February 04, 2024 / 13:03 IST
Representational picture

Karnataka government has announced uniform fares for cabs operating under aggregator rules by firms like Ola and Uber, as well as for city taxis (non-app-based city taxis).

According to the new fare structure announced by the state government on February 3, taxi vehicles will be categorised into three classes based on the cost of the vehicle.

The base fare is fixed at Rs 100 for up to 4 km for vehicles costing up to 10 lakh, with Rs 24 per additional km. For vehicles costing between 10 lakh and 15 lakh, the base fare for the first 4 km will be Rs 115, and the subsequent per km cost will be Rs 28. For vehicles above 15 lakh, the first 4 km will have a base fare of Rs 130, and each additional km will cost Rs 32. According to the order, cab aggregators are not allowed to collect surge pricing from passengers.

IMG-20240204-WA0017

L Hemanth Kumar, additional commissioner for transport and secretary of State Transport Authority, told Moneycontrol:  "Earlier, there were separate fares for app-based and city taxis. Additionally, each category had minimum and maximum fares, which we have now eliminated. We decided to introduce uniform fares for all taxis/cabs. Further, we removed the non-AC category from the fare structure, as all vehicles now come equipped with AC facilities."

The order further stated that waiting charges for passengers will be free for the first five minutes, and after that, it will be Rs 1 for every minute. Additionally, 5 percent GST will be collected by the app-based aggregators, and toll charges can be collected from passengers.

Also Read: Karnataka transport department announces fare structure for Quadricycles in Bengaluru

The fares will be 10 percent higher for nighttime passengers between 12 am and 6 am.

"Rates should not be charged on a time basis; instead, passengers will be charged based on the fares fixed in the notification by the government. No unauthorised fares shall be charged from passengers.....," the order stated.

Earlier fare structure

The previous tariff revision for app-based cabs, including Ola and Uber, was in 2021, fixing fares based on the price of vehicles categorised into four classes. Small cabs (vehicles costing up to Rs 5 lakh) were charged Rs 75 for the first 4 km, Rs 100 base fire for 4 km for vehicles costing between 5-10 lakh, Rs 120 base fare for 4 km for vehicles costing Rs 10 lakh-16 lakh, and luxury cabs (vehicles costing more than Rs 16 lakh) were charged Rs 150 for the first 4 km.

For non-app-based city taxis in Bengaluru, the base fare for non-AC taxis was Rs 75 for the first 4 km and Rs 18 for every subsequent km, while the base fare for AC taxis was Rs 100 for the first 4 km and Rs 24 for every additional km.

Also Read: Karnataka govt to launch Ola-Uber-like app by February: Transport minister

Meanwhile, licences under the Karnataka On-demand Transportation Technology Aggregators Rule 2016 for both ANI Technologies (operator of Ola) and Uber expired in 2021. However, both companies have been  operating cabs, autorickshaws, and bike taxis. Although both firms applied for licence renewal, the Karnataka transport department refused to renew them due to non-compliance with regulations, including the installation of GPS and panic buttons, as well as the display of driver details.

Tanveer Pasha, president of the Ola Uber Driver's and Owner's Association, said, "We have been advocating for a unified fare structure. Earlier, there were separate fares for app-based cabs and airport/city cabs. When the fare is lower, drivers end up losing money. In case of surge pricing, customers pay more. Previously, there was a fare category of vehicles costing less than Rs 5 lakh which has now been removed"

He said government should ensure that cab aggregators comply with the new fare structure. "They often reduce driver incentives and impose surge pricing on passengers. This will also ensure fixed income for drivers ."

Invite your friends and family to sign up for MC Tech 3, our daily newsletter that breaks down the biggest tech and startup stories of the day

Christin Mathew Philip is an Assistant editor at moneycontrol.com. Based in Bengaluru, he writes on mobility, infrastructure and start-ups. He is a Ramnath Goenka excellence in journalism awardee. You can find him on Twitter here: twitter.com/ChristinMP_
first published: Feb 4, 2024 01:03 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347