Karnataka: Your Cab Ride Might Become More Expensive As Government Notifies New Fare StructureOla (PTI)

Taxi rides in Karnataka are set to become more expensive with the Siddaramaiah-led government notifying a new fare structure under the Karnataka On-demand Transportation Technology Aggregators Rules, 2016, reports The Hindu. The new fare structure sets a price floor as well as a ceiling, and is expected to affect cabs operated by aggregators such as Ola and Uber as well as other players.

Under the new structure, fares come under four categories depending on the cost of the vehicle.

Small vehicles that cost less than Rs five lakh, classified as D-class cabs will have a base fare of Rs 44 for the first four kilometres with a minimum of Rs 12 per km and Rs 24 per km for the subsequent distance.

Vehicles that cost up to Rs 10 lakh – classified as C-class cabs – will have a base fare of Rs 52 and subsequent fare will be same as that for D-class cabs.

Vehicles that cost between Rs 10 lakh and Rs 16 lakh have been classified as B-class cabs and have a base fare of Rs 68 with the subsequent fare per kilometre being set at a minimum of Rs 16 and with a price cap of Rs 34.

A-class vehicles, also defined as ‘luxury cabs’ – vehicles that cost above Rs 16 lakh – will charge a base fare of Rs 80 and subsequent fare set between Rs 20 and Rs 45 per kilometre.

Tanveer Pasha, President of the Karnataka Taxi Drivers Association called the move a poll gimmick. He was quoted by The News Minute saying that the new norms were unscientific and would put the burden on passengers.

Also Read: Taxi Industry In India: A Story Of Bootleggers And Baptists

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