In a significant move to address concerns over surge pricing and provide a consistent pricing structure, the Karnataka government announced on Sunday a fixed fare rule applicable to app-based cab aggregators like Ola and Uber, as well as non-app-based city taxi services.
The newly introduced regulation categorizes taxi vehicles into three brackets based on their cost. For vehicles priced at ₹10 lakh or below, the fixed fare for the initial four kilometers is set at ₹100, with an additional charge of ₹24 per extra kilometer. Those falling within the ₹10 lakh to ₹15 lakh range will have a minimum fare of ₹115 for the first four kilometers and ₹28 for each subsequent kilometer. Vehicles costing ₹15 lakh or more will see a fixed fare of ₹130 for the initial four kilometers, with an additional charge of ₹32 for every extra kilometer.
A notable aspect of the regulation is the elimination of surge pricing for app-based cab services, a move that aims to address commuter concerns about inflated fares during peak hours.
While associations representing Ola and Uber have welcomed the decision, some commuters have expressed reservations about the increased fixed charges. Under the new rules, a four-kilometer ride that previously cost ₹75 will now have a fixed price of ₹100. However, a driver with three years of experience stated, “I have been with Ola and Uber for three years. I am satisfied with the move.”
In addition to the fixed fares, the Karnataka government has imposed restrictions on extra charges for late-night rides, allowing taxi operators to levy an additional 10% between 12 am and 6 am. The first five minutes of waiting time will be free for passengers, after which a charge of ₹1 per minute will apply. Cab aggregators are also permitted to collect 5% GST and toll charges from passengers.
The government’s initiative aims to create a fair and transparent pricing structure for both commuters and drivers, providing a balanced approach to the concerns associated with dynamic pricing models. The move is expected to bring more predictability to fares and enhance the overall experience for taxi users in Karnataka.
Sources By Agencies