In a move aimed at addressing concerns surrounding surge pricing and ensuring a consistent pricing structure for commuters, the Karnataka government has introduced a fixed fare rule applicable to both app-based cab aggregators such as Ola and Uber, as well as non-app-based city taxi services.Three-Tiered Classification Based on Vehicle CostThe new announcement categorizes taxi vehicles into three segments based on their cost. For vehicles priced at ₹10 lakh or below, the fixed fare for the initial four kilometers is set at ₹100, with an additional charge of ₹24 per extra kilometer. Vehicles falling within the ₹10 lakh to ₹15 lakh range will have a minimum fare of ₹115 for the first four kilometers and ₹28 for each subsequent kilometer. For vehicles priced at ₹15 lakh or more, the fixed fare for the initial four kilometers is ₹130, with an additional charge of ₹32 for every extra kilometer.Elimination of Surge PricingA notable aspect of the new regulation is the elimination of surge pricing for app-based cab services. Surge pricing has been a contentious issue among commuters, with complaints about inflated fares during peak hours. The move aims to provide transparency and consistency in pricing for both commuters and drivers.Mixed Reactions from CommutersWhile Ola and Uber associations have welcomed the move, some commuters express concerns about the increased fixed charges. Previously, a four-kilometer ride cost ₹75, but the new rules have set the fixed price at ₹100. The impact of these changes on commuters preferences and usage patterns will be closely monitored in the coming weeks.Additional RegulationsIn addition to fixed fares, the Karnataka government has imposed restrictions on extra charges for late-night rides. Taxi operators are allowed to levy an additional 10 percent charge between 12 am and 6 am. The first five minutes of waiting time will be free for passengers, after which a charge of ₹1 per minute will apply. Cab aggregators are also permitted to collect 5 percent GST and toll charges from passengers.Future ImplicationsThe introduction of uniform fares and the elimination of surge pricing signify a shift towards standardization in the ride-hailing industry. The move is expected to benefit both commuters, who can now anticipate consistent pricing, and drivers, who may experience increased trust and satisfaction. However, the impact on overall ride-hailing usage patterns and the financial dynamics of Ola and Uber in Karnataka remains to be seen. As the industry adapts to these changes, stakeholders will closely observe the evolving landscape of taxi services in the state.
