Saturday, July 20, 2024

Karnataka Govt Implements Uniform Fare Structure For Taxis, Including Uber and Ola

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Karnataka Transport Department has mandated a standardized fare structure for city taxis and app-based cab aggregators like Uber and Ola. This recent order, effective statewide immediately, ensures uniform fares for both categories of taxis, streamlining the system. Cabs are now categorized into three classes based on vehicle cost, with each class having specific minimum fares and additional charges per kilometer.

For vehicles with a purchase cost of Rs 10 lakh or below, the minimum fare is fixed at Rs 100 for up to four km, accompanied by a charge of Rs 24 for every additional kilometer. Those with a cost between Rs 10 lakh and Rs 15 lakh have a minimum fare of Rs 115, with a per km cost of Rs 28. Vehicles costing above Rs 15 lakh have a minimum fare of Rs 130, and Rs 32 is charged for each additional kilometer.

The directive explicitly states that cab aggregators are not allowed to impose extra charges on passengers. The waiting charge is structured with the first five minutes being free, followed by a charge of Re 1 for every subsequent minute. Additionally, app-based aggregators can collect five percent GST and toll charges from passengers. An extra 10 percent charge is permitted for cabs booked between 12 am and 6 am, as stated in the new regulations.

The order aims to bring parity to the fares of various taxi services, creating a level playing field in terms of pricing. This move by the Karnataka government seeks to establish fairness and consistency in the pricing models of both traditional city taxis and modern app-based cab services.

This significant decision by the Karnataka Transport Department ensures that commuters using city taxis and app-based cab services experience consistent and transparent pricing. By categorizing vehicles based on their cost, the authorities aim to align fares with the economic class of the vehicles. This not only simplifies the fare structure but also ensures that passengers are charged reasonably based on the type of vehicle they choose.

The standardized fare structure addresses concerns related to pricing discrepancies between traditional city taxis and their app-based counterparts. It eliminates confusion among passengers who often grapple with varying fare structures when choosing between different taxi services. This move is expected to enhance trust and confidence among consumers, fostering a more competitive and consumer-friendly environment in the transportation sector.

The new regulations emphasize that cab aggregators cannot levy any additional charges on passengers, reinforcing the commitment to transparent and standardized pricing. By setting a clear waiting charge policy and allowing app-based aggregators to collect specified taxes and toll charges, the government aims to strike a balance between consumer protection and facilitating the growth of the ride-hailing industry.

This development reflects the government’s proactive approach to keep up with the evolving dynamics of the transportation sector, especially concerning ride-hailing services. It showcases a commitment to creating an equitable environment for all players in the taxi industry, promoting healthy competition while safeguarding the interests of both service providers and commuters.

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