This Article is From Feb 05, 2024

How Karnataka's Cab Fare Update Will Benefit Commuters

The new fare structure, outlined in a notification, categorises cabs based on vehicle value.

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Karnataka News Edited by

This new rule will make travel more dependable, clear, and affordable for commuters

The Karnataka Transport Department has introduced uniform cab fares applicable to both app-based aggregators like Ola and Uber, as well as traditional non-app-based taxi services, across cities in the state. The new fare structure, outlined in a notification, categorises cabs based on vehicle value. 

For vehicles under Rs 10 lakh:

  - Fixed fare for the initial 4 km: Rs 100

  - Additional charge per km: Rs 24

For vehicles priced between Rs 10-15 lakh:

  - Fixed fare for the initial 4 km: Rs 115

  - Additional charge per km: Rs 28

For vehicles exceeding Rs 15 lakh:

  - Fixed fare for the initial 4 km: Rs 130

  - Additional charge per km: Rs 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 Rs 7 per additional kg. Waiting charges are exempt for the initial five minutes, followed by a Rs 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. 

Benefits for commuters:

  • Predictable Costs: With uniform taxi fares, commuters can expect consistent pricing for their journeys, eliminating the unpredictability associated with surge pricing during peak hours or high-demand periods.

  • Fair Pricing: Surge pricing, where fares increase during busy times, can often lead to inflated costs for passengers. Standardised fares help ensure that commuters are charged fairly, promoting transparency and preventing abrupt spikes in pricing.

  • Budget-Friendly Travel: Knowing the fixed rates for luggage weight also contributes to a budget-friendly travel experience. Passengers won't face unexpected charges for excess baggage, as the regulations provide clarity on charges per extra kilogram.

  • Consumer Confidence: Clear regulations and standardised pricing build consumer confidence in taxi services. Commuters can plan their journeys with greater assurance, knowing they won't encounter sudden and significant variations in fare rates.

  • Enhanced Customer Experience: The overall aim of these regulations is to create a more regulated and consumer-friendly environment. Commuters benefit from a streamlined and consistent experience, reducing the stress associated with uncertain fares and baggage charges.

This new rule will make travel more dependable, clear, and affordable for commuters while preventing sudden price hikes during busy times.

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