Karnataka issues uniform fare structure for cab aggregators

The Karnataka government has issued a uniform fare structure for aggregator-operated cabs in addition to city taxis. Under the new structure, operators such as Uber, Ola and Rapido will only be able to charge distance-based fares depending on the cost of the vehicle.
The state government has thus eliminated different fares for cabs deployed by ride-hailing platforms and city taxis. While city taxis typically follow a fare chart or metered fares, ride-hailing platforms show an upfront fare while booking.

Now, the minimum fare is set at Rs 100 up to 4 km for vehicles costing up to Rs 10 lakh, with every additional km chargeable at Rs 24. Similarly, for vehicles costing between Rs 10 and 15 lakh, the minimum fare for the first 4 km will be Rs 115, with a Rs 28 per km cost thereafter.

In a February 3 order, the state government said aggregators will be allowed to collect additional goods and services tax (GST) charges and toll fees from passengers.

The new fare framework does not allow aggregators to charge surge pricing as they offered dynamic fares, which fluctuate depending on the demand in a particular area and the availability of cabs.

Sources within the cab aggregator industry said the move is likely to increase the fares for consumers.

“There are still some clarifications needed on this order for aggregators…especially on the subject of commission,” an executive said.In addition, operators will now also be able to charge additional fares for luggage. While the fee for luggage will be nil for up to 120 kg, customers will have to pay an additional Rs 7 for every 30 kg thereafter.