Bengaluru: In a move that will benefit commuters and regulate the taxi industry, the Karnataka government has announced a new uniform fare structure for all cabs operating in the state, including app-based aggregators like Ola and Uber, and traditional non-app-based taxi services.
The new fare structure, which was notified on Saturday, categorises cabs based on the value of the vehicle and prescribes fixed and per kilometre charges for each category. The notification also prohibits cab aggregators from collecting any fee additional to what is prescribed, effectively banning surge pricing, which often leads to inflated costs for passengers during peak hours or high-demand periods.
According to the notification, the fares for the four categories of cabs are as follows:
- For vehicles under ₹ 10 lakh: Fixed fare for the initial 4 km: ₹ 100; Additional charge per km: ₹ 24
- For vehicles priced between ₹ 10-15 lakh: Fixed fare for the initial 4 km: ₹ 115; Additional charge per km: ₹ 28
- For vehicles exceeding ₹ 15 lakh: Fixed fare for the initial 4 km: ₹ 130; Additional charge per km: ₹ 32
Additionally, a 10% surcharge applies to taxis operating between 12-6 am. Passengers are allowed to carry luggage up to 120kg, with any excess weight incurring a charge of ₹ 7 per additional kg. Waiting charges are exempt for the initial five minutes, followed by a ₹ 1 per minute fee. Both taxi operators and aggregators are permitted to collect GST and toll charges from the passengers.
The notification states that fares should solely be based on the distance travelled and not on the duration of the trip.
The new fare structure is expected to bring more predictability, transparency, and fairness to the taxi industry, which has been largely unregulated and dominated by app-based aggregators in recent years. Commuters can plan their journeys with greater assurance, knowing they won’t encounter sudden and significant variations in fare rates. Taxi operators can also benefit from a level playing field and a clear set of rules to follow.
The government’s decision comes after more than two years of consultations and deliberations with various stakeholders, including cab aggregators, taxi unions, consumer groups, and experts. The transport department had earlier formed a committee to study the existing fare structures and suggest revisions based on the changing market conditions and consumer preferences.
The notification also mentions that the government will review the fare structure every six months and make necessary adjustments based on the changes in fuel prices, taxes, and other factors.
The new fare structure will be applicable across all cities in Karnataka, including Bengaluru, Mysuru, Mangaluru, Hubballi-Dharwad, and Belagavi. The transport department has directed all cab operators and aggregators to comply with the notification and display the fare details prominently in their vehicles and apps. The department has also set up a helpline number (080-22210994) and an email address (transport@karnataka.gov.in) for passengers to lodge complaints or grievances regarding the taxi services.
