Karnataka government revises cab fares, including Ola & Uber

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 ."