Karnataka cab drivers unhappy with new fare notification

Galtero Lara
Enero 14, 2018

Four classes of taxis have been created with the least expensive cars being categorized in the D category while luxury cars costing more than Rs. 16 lakh have been put in the A category. Similarly, maximum fare for Class B vehicles will be Rs 34 per km and minimum will be Rs 16. In a Toyota Etios (vehicle price between Rs 5 lakh and Rs 10 lakh), a 10-km ride would cost between Rs 124 and Rs 196.

"There is only a marginal difference in the revised fare structure as cab aggregators never followed the rule on maximum cap that was in place earlier".

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.

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

According to the notification, a D-category taxi, costing up to Rs 5 lakh, will have a minimum fare of Rs 44 for the first 4 km, after they can charge anywhere between Rs 11 and Rs 22 a kilometre.

For A category cabs (vehicles costing above 16 lakh), it will be Rs 80 for the first 4 km and thereafter, it will be a minimum of Rs 20 to a maximum of Rs 45 per km.

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While users of Ola and Uber that BusinessLine spoke to were happy about the move to remove the extra fare that was being charged based on the time taken to complete a trip.

For the first 20 minutes, there will be no waiting charges and post that, a charge of Rs 10 for every 15 minutes.

The new fare structure will come into effect immediately for air-conditioned city taxis operating under Karnataka on-demand Transportation Technology Aggregators rules, 2016 within the radius of 25 km of Bengaluru city. "It only brings cheer to the likes of Ola and Uber which will see increased revenues and we protest this move".

Explaining that the new fares will only benefit the aggregators, who can now play around with dynamic pricing up to the maximum price band all through the day, he said, "The government has done this just a few months before the elections to get on the good books of drivers and cab aggregators, while drivers do not stand to gain at all".

Commenting on the move Uber India GM - South Christian Freese said they welcomed the efforts taken by the state government to revise the existing fare structure, keeping in mind the interest of hundreds of thousands of 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.

"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", he added.

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