Karnataka to fix minimum fares for Uber and Ola

The Karnataka transport department is planning to fix a minimum fare for taxis attached to Uber and Ola in the city, with a mandate to protect the driver’s interest.

While the maximum rate that can be charged by the aggregators is already fixed, Ola and Uber are increasingly becoming competitive with lower fares and promotional fares to attract customers. The taxi aggregators are currently charging as low as ~6 per kilometre. The maximum fare that can be charged by the aggregators is ~14.50 for non-air conditioned taxi and ~19.50 for an air-conditioned taxi.

“Keeping in mind the interest of drivers who have attached their vehicles with aggregators, we have decided to impose a minimum fare for the taxis. We will set up a committee that will be headed by an additional commissioner and the fares will be set up,”said M K Aiyappa, commissioner of transport department.

Aiyappa added the committee would calculate the prices based on a scientific study done by the department. “Though cheaper fares are beneficial for the customers, the drivers have been affected. This way it will make them happy. The fares will be such that it is a win-win situation for both. Currently, this is the major concern for the drivers,” added Aiyappa.

The announcement comes after various drivers protested against lower incentive, high penalisation to drivers for cancellation of rides collectively leading to lower monthly income.