Ola, Uber, and Rapido have reduced base fares for auto rides from ₹60 to ₹30 in Bengaluru, after Karnataka transport department sent a noticeseeking explanation on the surged prices.
This change in base fare has brought the auto fare for 1 km trip to around ₹70 from the earlier ₹100 minimum charge. Prior to this, multiple customers have raised concern on the surged auto fares charged by these ride-aggregators.
Speaking to businessline, an industry source said that the base fares were increased to compensate auto drivers for pick-up component of online bookings, which became costlier with the rising fuel prices.
“Auto drivers felt the heat as fuel prices went up and driving became costlier. Unlike an auto hailed from the street, booking with aggregators involves a “pick-up” component. As fuel prices changed, pick-up costs went up and it became unviable for drivers to make the pick-ups in the absence of any increase. Also, pick-up distances have increased after Covid, “ the source added.
On top of the ₹30 base fare, online ride aggregators also charge about ₹40 convenience or booking charges. In 2021, the State authorities had fixed ₹30 as the base auto fare for the first 2 kilometres and ₹15 per km after that.
Further, the industry source added that all ride aggregators facilitate a total of ₹100 crore revenue per year for Government.
Commenting on the Government notice, a Rapido spokesperson, on Friday, said, “We haven’t increased our minimum fare to ₹100 in Bengaluru. During peak hours, dynamic surge kicks in to handle availability to customers.”
Ola and Uber did not respond to businessline queries.