Uniform Fare Norms: Karnataka Government Sets Regulations, Uber and Ola Expected to Comply with Standardized Taxi Rates

City taxis and app-based aggregators like Uber and Ola operating in Karnataka will now adhere to the recently announced fare structure by the Karnataka Transport Department. In a directive issued on Saturday, the department mandated a uniform fare structure for both app-based cab aggregators and traditional city taxis, applicable statewide with immediate effect. Previously, the two categories had distinct fare structures.

Under the updated fare system, cabs are classified into three categories based on the vehicle's cost. For vehicles with a purchase cost of Rs 10 lakh or less, the minimum fare is set at Rs 100 for up to four km, with an additional charge of Rs 24 per extra km. Vehicles costing between Rs 10 lakh and Rs 15 lakh have a minimum fare of Rs 115, with Rs 28 charged for each additional km. For vehicles costing above Rs 15 lakh, the minimum fare is Rs 130, and Rs 32 is charged for every additional kilometre.

The directive explicitly prohibits cab aggregators from imposing additional charges. Regarding waiting charges, the initial five minutes are free, after which passengers will be charged Re 1 for every subsequent minute.

Furthermore, app-based aggregators are allowed to collect five percent GST and toll charges from passengers, according to the new order. Additionally, operators can levy an extra 10 percent charge for cabs booked between 12 am and 6 am, as specified in the directive.

(With Agency Inputs)