Karnataka: New cab fares kick in, but govt unlikely to act against violators

Bengaluru: The new cab fares notified by the Karnataka Transport Department have come into force, but it is unclear if ride aggregators like Uber, Ola and Rapido are following them. 

On February 5, the Transport Department notified uniform fares for all cabs plying within Karnataka, including street taxis and those attached to ride aggregators. Taxi operators were given 30 days for compliance. 

The new structure fixes fares based on the purchase price of the cab and prohibits surge pricing, flexi-fares and per-minute charges. 

Hemantha Kumar L, Additional Commissioner of Transport, told DH that the new fares had come into force and said some operators had begun following them. 

However, a spokesperson for a ride-hailing firm neither confirmed nor denied if this was the case. 

In a representation to the state government, industry body Nasscom welcomed the minimum fare for rides lasting up to 4 km, but asked for allowing dynamic pricing and commission/service fees "given the value addition offered by aggregators". Flexi-fares should be restored, too, it added. 

"Earlier, the fare structure for app-based taxis and non-app-based city taxis was different. The higher fare for app-based taxis considered the added value (such as route-tracking, ride-sharing features and customer care services)... However, the new fare structure mandates the same fare for app-based and non-app-based taxis, thereby making it tougher to offer and improve value-added services," it said. 

An official source confirmed Nasscom's representation, but said it was for the government to decide. 

Asked if the Transport Department would send notices and take action against taxi operators that do not follow the new fares, the source replied in the negative, citing ongoing litigation in the High Court of Karnataka. 

"The new fare structure has been published in the gazette, so there will be no more official communication on the matter. If there are any violations, we may approach the high court and ask for permission to penalise drivers or seize the vehicles," the source said. 

Ola and Uber operate without a licence because their licences expired in 2021. They have challenged the Karnataka On-demand Transportation Technology Aggregators Rules, 2016, and the high court has restrained the government from taking coercive action against them.

'Ill-advised' 

Independent urban mobility expert Satya Arikutharam doubted whether ride aggregators followed the new fares and called Nasscom's representation to the government "ill-advised". 

In his opinion, app-based aggregators never sincerely adhered to the prescribed fares and their algorithm-driven surge pricing has been "gaming" both driver's earnings and ride fares.