Cabs to cost more as govt sets new minimum fare

UberReuters File

UberReuters File

Depending on the cost of the vehicle, four categories of fares have been fixed.

These cars priced between Rs 5 lakh and 10 lakh fall in "C" category with a base fare of Rs 52.

With the recent notification by the Karnataka Government, cab aggregators will have to introduce four categories of fares - now the cost for hiring a small cab, a vehicle that costs below Rs 5 lakh, or more commonly known as uberGO and Micro, will be Rs 44 for the first four km.

For subsequent kilometres, the aggregators can charge a minimum fare of Rs 12 and a maximum of Rs 24.

At first look, the new fare structure seems to be streamlining the fares rather than allowing a hike.

Under the new fare scheme, a copy of which is available with Express, radio taxis, as defined in the Karnataka on-demand Transportation Technology Aggregators rules, will be able to charge fares based on the price of the vehicle.

For a auto costing more than Rs 10 lakh and within Rs 16 lakh, the base fare for first four kilometres is set at Rs 68.

For the first 20 minutes, there will be no waiting charges and post that, a charge of Rs 10 for every 15 minutes. The per km tariff for journeys beyond 4km will have to be within the minimum and maximum fares prescribed for each class in the notification. Pasha, founder of OlaTaxiforSureUber Drivers and Owners Association, ended his agreement with cab aggregators and is associated with Namma Tiger, backed by JD (S) state president HD Kumaraswamy.

The Economic Times also quotes a department official who explained the contrasting demands of the taxi aggregators and drivers: "The cab aggregators wanted us to increase the maximum fare cap in all categories so that they could charge high during peak hours. The demand from drivers, however, was to increase the minimum cap as they feel that cab aggregators make money at their expense".

Uber India has welcomed the effort made by the state government in revising the existing fare structure keeping in mind the interest of thousands of its driver partners.

"While it is a step in the right direction, we believe dynamic pricing will help increase reliability for riders and improve asset utilisation for driver partners", said Christian Freese, GM-South, Uber India.

According to Transport Commissioner B Dayananda, the new fare structure was arrived at very scientifically after studying in great detail the aggregator model from the database provided by the cab aggregators and by involving all the stakeholders, including drivers and commuters. "We remain committed to engaging and working with the relevant authorities to enable regulations that can enhance the future of urban mobility in the state".