In a first, Karnataka brings in uniform fares for all cabs

Fares revised after 3 years; no surge or maximum pricing.

Bengaluru: For the first time, Karnataka has fixed uniform kilometre-based fares for all types of cabs plying in Bengaluru and elsewhere in the state, including airport taxis and those attached to ride aggregators. The state government has warned against "unauthorised" practices such as surge pricing. 

A notification issued by the transport secretariat on February 3, 2024, noted that the state government had decided to introduce uniform fares by modifying two notifications issued in 2021 under Section 67(1)(i) of the Motor Vehicle Rules, 1988. 

Cabs have been categorised into three based on their purchase price (see the table). The government has also stipulated luggage, waiting time and night-time charges. While taxi drivers/aggregators can collect GST and tolls from passengers, they cannot levy any per-minute charges. 

Transport Minister Ramalinga Reddy said a uniform fare structure had been adopted to plug "inconsistencies" in the cab fare structure and address complaints from drivers and passengers. 

"Cab aggregators often charge passengers arbitrarily: one fare for lean hours and another for peak hours. We have addressed this anomaly," he told DH. 

L Hemantha Kumar, the Additional Commissioner of Transport and the Secretary of the Karnataka State Transport Authority, said they had done away with the old fare structure that contained minimum and maximum charges. Cab aggregators charge passengers anything in the middle. For example, if the fare after the first four kilometres is between Rs 24 and Rs 48, passengers are charged Rs 35 or Rs 40/km. 

"We have introduced a flat structure," he said. "There will be no surge pricing either." 

Surge pricing refers to charging higher fares when there is high demand, especially during peak hours. 

The  new fare structure released by the government of Karnataka

Vehicles costing Rs 10 lakh or less have been bracketed as non-AC cabs and their fares are fixed accordingly, Kumar said. 

On February 1, 2021, the government fixed fares for taxis, city taxis and other taxis. The base fare (first 4 km) for non-AC city taxis was Rs 75 (Rs 18 for every subsequent km) and for AC city taxis, it was Rs 100 (Rs 24 for every subsequent km). 

On April 1, 2021, the government fixed fares for cabs attached to ride-hailing firms such as Ola and Uber in Bengaluru, categorising them into A, B, C and D based on their purchase price. 

The base fare for 'D' cabs (costing less than Rs 5 lakh) was Rs 75 (Rs 11-36 for every subsequent km); 'C' cabs (Rs 5-10 lakh) Rs 100 (Rs 21-42 for every subsequent km); 'B' cabs (Rs 10-15 lakh) Rs 120 (Rs 24-48 for every subsequent km); and 'A' cabs (Rs 15 lakh and above) Rs 150 (Rs 27-54 lakh for every subsequent km). 

Ride-hailing firms Ola and Uber operate without a licence in the state 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. 

Reddy promised legal action against those violating the fare structure and said steps were being taken to get the court stay lifted. 

Tanveer Pasha, president of the Ola Uber Driver's and Owner's Association, welcomed the notification but asked if the government would enforce it "effectively". 

"This was one of our key demands. Having uniform fares for cabs, just like autos, helps everyone. But the government should ensure Ola, Uber and other companies follow the new fares," he said. 

Ola and Uber did not immediately comment.