wordpress blog stats
Connect with us

Hi, what are you looking for?

Ola and Uber demand maximum fare to be raised in Bangalore

Cab aggregators Ola and Uber have requested the transport department in Karnataka to increase the maximum fare chargeable to the customers to Rs 28 per kilometre reports Economic TimesCurrently, the maximum fare that a cab aggregator can charge a customer is Rs 19. 50 for an air conditioned vehicle and Rs 14.50 for a non-air conditioned vehicle. These fares were fixed in April last year, after taxi aggregators were fleecing customers, with peak time or surge pricing, base ride fares as well as adding ride time fares into their rates.

The Karnataka Transport department has set up a committee that consists of two joint transport commissioner as well as secretary of Bangalore Tourist Taxi Owners Association, Radhakrishna Holla to fix a minimum and maximum fare for the cab aggregators that will make sure that both drivers and customers get a reasonable cost.

To attract more customers onto their platform and in the competition to win over each other, both Ola and Uber started offering rides to customers that were as low as Rs 4 per kilometre. This started making the drivers run into losses as and since the last two months drivers have been going on strikes and seeking government for better wages.

B Dayananda, Transport Commissioner, told MediaNama that the department is awaiting the committee report on the same.

“Regarding the cab aggregators demand, we have set up a committee to look at the fares. Once the committee comes out with a report we will announce and minimum and maximum fares. As of now, the maximum fares will remain same. We are waiting for the committee’s report,” said Dayananda.

Driver’s association against raising maximum fare

Advertisement. Scroll to continue reading.

However, drivers associations feel that increasing the maximum fare will add to the problems faced by drivers rather than reduce it. “ The reason the maximum fare was first brought in place was because aggregators were fleecing customers. If the fare is increased, these aggregators will again start having dynamic pricing, with lower pricing during non-peak hours and higher during peak hours. This will reduce demand from customers. Finally, it would hurt both the drivers as well as customers, “ said Holla.

Drop in salaries of drivers

FactorDaily showed the average salaries of Ola and Uber drivers dropped by 8% in Q1 2016 from what it was in Q4 2015 mainly due to cut in incentives from the companies. The companies had initially attracted drivers to onboard on their platforms guaranteeing them Rs 1 lakh salary per month. As salaries dropped and more and more taxi’s were onboarded to the platforms, drivers were unable to repay loans.

There have been at least three cases where during strikes drivers have attempted to commit suicide. The drivers have been demanding that they have their original salaries back along with incentives. Drivers in Karnataka and Delhi have also separated from the aggregators and started their own cab hailing apps.   

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.


In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...


By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...


By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...


By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

You May Also Like


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ