Govt mulls uniform fare as taxi service aggregators continue to fleece customers

Bengaluru: The transport department has decided to use uniform fare as a weapon to curb the piracy of aggregator companies and other taxi drivers that provide app-based taxi services in the capital.

Karnataka State Road Transport Authority has classified the city taxi service as A, B, C and D based on the value of the vehicles and fixed the fare with effect from April 1, 2021. This rate will be applicable for the services of taxis plying within 25 km radius from BBMP border. However, taxi service aggregator companies and other taxi drivers are exploiting the customers by charging three to four times more than the rate fixed by the authority.

Ola and Uber are the leading app-based taxi service aggregator companies in the capital. There are about 2.22 lakh cabs in the city and there are more than 80 thousand daily trips. App-based taxi fares are not the same 24 hours a day. Pricing is based on demand. Different rates are charged during high booking and low booking. Most of the aggregator companies are extorting customers in the name of search pricing.

Although there is a rule that rates should not be fixed based on booking demand, place to be reached and time, customers are being charged double regardless of this. Higher rates are charged at times of high demand or at high demand locations. On the other hand, different aggregator companies are charging different rates for the same location. Also, GST and toll charges, waiting charges, baggage charges are being collected separately from the passengers themselves. Other city taxi drivers have also resorted to cheating like aggregator companies to earn money.

When the customer chooses the taxi service, the fare information is provided in the app. As all the taxis of the app-based service are equipped with GPRS devices, the complete information about their movement is available at the offices of the aggregator companies. At the time of booking the service, the customer will be informed based on how many taxis are available within 2 km of their area. As customers have no other options, they book according to the rate set by the company. But since the rate is fixed according to the demand, different rates are charged for the same place at different times. This fraud does not come to the attention of customers.

There have been widespread complaints from the public regarding daylight robbery going on in the city taxi service. Thus, the transport department has decided to set a uniform fare in order to put a brake on the gambit of aggregator companies and other taxi drivers. The department has already submitted a proposal to the government in this regard.

The transport minister, who has taken a serious look at the looting of city taxi services, has suggested fixing a uniform fare in a people-friendly manner. According to the instructions of the Minister, a proposal has been submitted to the government for fixing the uniform fare, said Transport Department officials.