Karnataka government announces new uniform fare structure for cabs in Bengaluru

The State government has introduced a new uniform fare for all cabs in the city, including those operating using aggregator platforms, like Ola and Uber, and traditional city taxis. The new fare system has brought in a simple three slab structure based on the value of the car and has done away with flexible pricing. 

The State government has introduced a new uniform fare for all cabs in the city, including those operating using aggregator platforms, like Ola and Uber, and traditional city taxis. The new fare system has brought in a simple three slab structure based on the value of the car and has done away with flexible pricing. 

The government’s notification issued on Saturday, explicitly prohibits cab aggregators from collecting any fee additional to what is prescribed, effectively banning surge pricing. The notification says that fares will be calculated solely based on the government’s prescribed rates, and any unauthorised charges are strictly prohibited. 

Under the revised structure, the base fare for a distance of upto four kilometres starts at ₹100 for vehicles valued upto ₹10 lakh, with an additional charge of ₹24 per kilometre thereafter. For vehicles priced between ₹10 lakh and ₹15 lakh, the initial four-kilometre fare is set at ₹115, with a subsequent per-kilometre rate of ₹28. Vehicles exceeding the ₹15-lakh mark will have a minimum fare of ₹130 for the first four kilometres, with each additional kilometre priced at ₹32. 

Hemanth Kumar, Additional Commissioner, Transport Department and secretary, Karnataka State Transport Authority, highlighted the elimination of different fare structures for app-based cabs and city taxis. He said the new system replaces the previous setup, which included minimum and maximum fares for different categories. Moreover, the new structure removes the non-AC category, citing the standardisation of air-conditioned amenities across all vehicles.

The order also specifies that waiting charges are free for the initial five minutes and thereafter will be billed at ₹1 per minute. App-based aggregators will collect a 5% Goods and Services Tax (GST) from passengers, and toll charges may be passed on to riders. Nighttime fares, applicable from 12 a.m. to 6 a.m., will incur a 10% surcharge. 

Previously, fare structure was revised for app-based cabs in 2021 and categorised into four slabs based on the value of vehicles. Non-app-based city taxis in Bengaluru were subject to varying minimum fares depending on the presence of air conditioning. 

Tanveer Pasha, president, Ola Uber Drivers’ and Owners’ Association, welcomed the government bringing in a uniform fare structure for all cabs in the city. “Under the previous system, there were concerns over both driver’s earnings and costs to the passengers,” he said, appealing to the government to ensure driver welfare and price consistency for passengers while enforcing the new fare structure.