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This is an archive article published on December 12, 2022

Amid allegations of overpricing, cab aggregators in Bengaluru display erratic fares

While the government has fixed cab fares at Rs 75 for the first four kilometres, ride-hailing apps in Bengaluru were charging up to Rs 150 for 2 km, which is basically Rs 75 per kilometre.

Last week, urban mobility experts as well as passengers pointed out that cab aggregators Uber and Ola had been overcharging customers for short trips in the city. (File)Last week, urban mobility experts as well as passengers pointed out that cab aggregators Uber and Ola had been overcharging customers for short trips in the city. (File)
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Amid allegations of overpricing, cab aggregators in Bengaluru display erratic fares
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Two days ago in Bengaluru, Uber displayed an exorbitant rate of Rs 150 for a two-kilometre ride, but by Monday the cab aggregator has slashed the price to Rs 78, which is the base fare for the same distance, according to passengers.

Last week, urban mobility experts as well as passengers pointed out that cab aggregators Uber and Ola had been overcharging customers for short trips in the city. For instance, the cab fare from Trinity to Chinnaswamy Stadium in central Bengaluru, a distance of about 2 km, was displayed at Rs 151 on Uber last week. Similarly, the fare for a trip from Gandhi Bazar to Yediyur lake in south Bengaluru (nearly 2 km) showed Rs 150 on the same app. Interestingly, a 4-km Uber trip between Kengeri Satellite Town and Jnana Bharati Metro station only displayed a fare of Rs 108.

Uber’s last week cab fare for 2 km was Rs 151, while the cab fare for today for the same distance was at Rs 78.

Meanwhile, the Ola app showed a fare of Rs 110 for a 2-km trip from Kengeri Satellite Town to the Kengeri sub-registrar office on Monday. From Jayanagar 4th block to South End circle, a distance of 1.5 km, the Ola app displayed a cab fare of Rs 110. Similar fares were seen for other 2-km trips.

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Ola’s cab fares for 2 km distance rides were at Rs 110.

While the government has fixed cab fares at Rs 75 for the first four kilometres for small cabs and Rs 150 for luxury cabs, Uber in Bengaluru was charging around Rs 150 for 2 km, which is basically Rs 75 per kilometre.

Uber’s last week cab fares for 2 km distance near Kengeri was at Rs 151, while the cab fares for today for the same ride was Rs 78.

Earlier, cab aggregators that were operating autorickshaw services violated government norms by charging nearly Rs 100 for 2 km as against the base fare of Rs 30 for the first 2 km and Rs 15 for every subsequent kilometre. Urban mobility experts believe that though aggregators complied with the Karnataka High Court’s directions to slash autorickshaw fares, they have now jacked up the prices for cab-hailing services.

Sathya Arikutharam, an independent mobility expert, said, “Cab aggregators are just ripping off passengers who travel short distances. Rs 110-150 for just 2 km is against the government-fixed rate of Rs 75 for the first four kilometres. We are not sure if the government has the capacity to monitor surge pricing or control the pricing mechanism of cab aggregators. This only reflects poorly on the transport department’s administration and policies that allow the aggregators to get away with this,” Arikutharam added.

Experts also pointed out that until last week, aggregators collected surplus and made profits by charging exorbitant fares on cab services, thus exploiting customers and drivers again.

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Speaking to indianexpress.com, a senior transport official said, “The cab aggregators’ licence is yet to be renewed. The government takes into consideration all parameters, rules and regulations under the Karnataka On-demand Transportation Technology Aggregators Rules, 2016, before renewing the licence. Fearing this, the aggregators might have slashed the prices as per norms.”

While representatives of Ola did not wish to comment on the matter as it was “sub-judice”, an official with Uber, who did not wish to be identified, said the display of exorbitant fares “might be a technical issue”.

Sanath Prasad is a senior sub-editor and reporter with the Bengaluru bureau of Indian Express. He covers education, transport, infrastructure and trends and issues integral to Bengaluru. He holds more than two years of reporting experience in Karnataka. His major works include the impact of Hijab ban on Muslim girls in Karnataka, tracing the lives of the victims of Kerala cannibalism, exploring the trends in dairy market of Karnataka in the aftermath of Amul-Nandini controversy, and Karnataka State Elections among others. If he is not writing, he keeps himself engaged with badminton, swimming, and loves exploring. ... Read More

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