Panel moots minimum fare for app-based cabs

The committee set up by the Transport department to fix minimum fare for app-based cab aggregators has submitted its report to the government, recommending a fare of Rs 10 per kilometre (km) and Rs 12 per km for small cars and sedans, respectively.

Joint Commissioner for Transport J Gnanendra said the fare is the amount that the aggregators must pay to the drivers. “Once the government accepts the report and passes an order, the aggregators can’t pay less than that,” he said.

The senior official said the committee took several parameters into account while arriving at the figures in a scientific way. Sources said the fares of cabs like Ola and Uber may see a marginal increase. “We already have base prices which almost correspond to the same fare index. The drivers, however, will get more money per kilometre,” a source said. The source, however, said that the customers who ride beyond 10 km may end up paying more in the coming days.

However, drivers who have been seeking a raise in earnings and protested against the cab aggregators for offering rides at Rs 6 km/km, said they were not satisfied with the recommendation. “An auto driver, who invests Rs 1.5 lakh on his vehicle, gets Rs 12.50 per km. A driver associated with cab aggregators invests Rs 6 lakh for a small car and Rs 9 lakh for a sedan. The panel should have fixed Rs 12 per km for small cars and Rs 14/km for sedans considering that we have to pay commission to the companies,” said Tanveer Pasha, leader of a drivers’ union.
DH News Service

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