After auto-rickshaws, metered taxis to start operating in Bengaluru roads as pilot programme begins

For vehicles priced between Rs 10-15 lakh, the fixed fare is Rs 115 with each additional km costing Rs 28. Cabs priced Rs 15 lakh or more have a fixed fare of Rs 130 for the minimum four km distance, with each additional km costing Rs 32. As of now, only Meru operates cabs on a metered model for airport commutes.

Despite the government fixing the fares for auto-rickshaws and taxis operating in the state, the onset of the aggregator model diluted the regulatory framework and transitioned towards a more dynamic pricing model based on the demand and supply of rides. As a result, most of the auto-rickshaw drivers —  in complete defiance of regulations — started overcharging and demanded more than the normal fare from the customers.

Niranjanaradhya N, CEO, Brand Pride Mobility which operates Nagaraa metered auto-rickshaws, said they are now working with like-minded cab drivers eager to switch to metered taxis and are facilitating the process. “We have been hearing concerns from a lot of cab drivers over the years of high commission rates charged by cab aggregators which is impacting their overall earnings. When a ride costs Rs 600, the driver ends up getting only between Rs 400 and Rs 420. This is why we are working with a small group of cab drivers who are ready to switch to metered taxis and willing to operate in line with government-fixed fares. This ensures that the drivers can keep the full earnings to themselves on a zero commission model,” said Niranjanaradhya.

Niranjanaradhya has also reached out to the government seeking approval and certifying the revised fare fixation for cabs. “We are also meeting multiple meter sellers willing to sell meters in bulk for the drivers. The meter costs Rs 6000 (plus GST). A group of 200 cab drivers have expressed interest in switching to the meter-based model, after we conducted a pilot. We are currently piloting using the meter with sedan and mini categories of cabs in a street-hailing model,” said Niranjanaradhya.

Earlier, the Internet and Mobile Association of India (IAMAI), a not-for-profit industry body representing the digital services industry, urged the Karnataka Transport Minister Ramalinga Reddy to reconsider and revise the February 3 notification issued by the transport department fixing uniform fares for cab aggregators across the state.

Chitrita Chatterjee, Associate Vice President and head of public policy, IAMAI, stressed that by ‘eliminating dynamic pricing’ the aggregation system of transportation will be on the back foot which will hamper the livelihoods of the drivers, resulting in longer waiting time for customers and expensive fares for long-distance trips.

The Association also highlighted that the Karnataka government must not equal the aggregation system with the traditional street-hailing cab mode as the web-based transportation aggregation companies are different and more tech-enabled than the latter.