Karnataka Govt Issues New Uniform Fare For Cabs, Ola, Uber; Min Fare Priced Acc To Vehicle Cost

In a move that is welcomed by passengers, the Karnataka Government has recently issued a new uniform fare structure for the state which will impact even cab aggregators like Ola, Rapido and Uber. Among the salient features of this new uniform fare directive is the fact that cab aggregators will not be allowed to employ dynamic pricing and “surge charges”. Here are all of the important details that you would need to know about this new directive.

Karnataka Government Issues New Uniform Fare For Cabs

The Karnataka Transport Department has issued a new fare structure which makes the fares charged by city taxis as well as cab aggregators uniform. The charges are divided into three categories which are based on the cost of the vehicle.

According to an article which was recently published by the Economic Times or the ET, cars costing below ₹10 lakhs can charge a minimum fare of ₹100 for the first four kilometres and ₹24 thereafter per kilometre. The second is for the ones costing between ₹10 lakhs and ₹15 lakhs.

They can charge a minimum of ₹115 for the first four kilometres and ₹28 per kilometre thereafter. For the last category, which is for cars costing more than ₹15 lakhs, the minimum charge has been fixed at ₹130 for the first four kilometres and ₹32 per kilometre thereafter.

Also Read: 4000 Trekkers Overcrowd Karnataka’s Kumara Parvatha During R-Day Long Weekend; The Sight Is Concerning

No Dynamic Pricing Allowed; Cabs Cannot Have Surge Charges

Prior to this rule, the fares for the two categories of taxis would differ quite significantly. What is more, private cab aggregators like Ola, Racpido and Uber will also have to comply with this new common fare structure.

The new rule also strictly prohibits the use of dynamic pricing which is commonly used by private cab aggregators. This means that “surge charges” during specific times of the day will no longer be allowed.

Also Read: Author Shares Near Death Experience With 11-YO Daughter In Uber; Writes “Truck Driver Fled Without Checking On Us”

Do you think this rule should also be adopted by other states? Which state do you think needs it the most? Let us know in the comments section below!

Cover Image Credits: Canva Images

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