Hidden charges in taxi fares likely to go

Hidden charges in taxi fares likely to go

Hidden charges in taxi  fares likely to go

Cab users could soon heave a big sigh of relief as the Transport Department has framed rules to prevent aggregators like Ola and Uber from collecting hidden charges.


The new rules, likely to come into force within a fortnight or a month, also make it mandatory for cab aggregators to comply with the Motor Vehicles Act.

The department wants to fight the arbitrary pricing mechanism that aggregators follow, instead of using a standardised fare-chart.

At present, taxi operators keep the base price low to attract passengers and subsequently introduce several surcharges. These surcharges, known as hidden charges, include peak hour charges, congestion charges, waiting time charges, charges for agreeing to ply in adverse weather conditions and the like.


Cab drivers usually point to heavy rain and charge extra citing that no other cab or auto would ply in such adverse weather conditions. The fact that a driver is willing to ply needs to be incentivised, a section of the cab drivers argue.

But the Transport Department is in no mood to encourage such a policy.

Transport Commissioner Ramegowda told Deccan Herald: “We are bringing out a new set of rules for cab aggregators to eliminate hidden charges levied by them on passengers. We have already framed the rules and have submitted it to the State government. We are awaiting the government’s response after which we will seek to publish it in the gazette.”

Under the proposed rules, Ramegowda said, cab aggregators will have to register themselves under the Motor Vehicles Act.

The operators will also have to declare the number of vehicles being operated by them, the agreements made with the drivers, their office address and the grievance redressal mechanism.

The rules are being framed in tune with the Centre’s directive to aggregators to charge fares that has been approved by transport authorities.


Under the new rules, drivers will not be able to attach their cars to multiple aggregators. The department is also likely to introduce a rule making city taxi permit mandatory for cabs operating under these aggregators.

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)