Panel to decide Ola, Uber minimum fare

The Transport Department has set up a committee to consider fixing a minimum fare for app-based cab aggregators, including Ola and Uber, whose drivers are protesting against their fare models.

Transport Commissioner M K Aiyappa said the department has fixed a maximum fare of Rs 14.50 for small cars and Rs 19.50 for sedans. “Drivers have complained that cab aggregators offer rides at lower fares. We have formed a committee comprising the joint commissioner, regional commissioner and other officials to consider fixing a minimum fare,” he said.

The decision comes after a week-long strike by drivers associated with Ola and Uber which was launched on February 23. The protesters complained that both companies lower the fare in competition to woo customers which has hit the drivers’ earnings.

“We drive 25 kilometres and get Rs 300 from the rider. The company deducts 30% from the amount. So, we essentially earn about Rs 8 per kilometre. How can we earn lower than fare fixed by government? We have to pay for cancelling such rides,” said Tanveer Pasha, leader of a drivers’ union.

He said the committee should not fix anything lower than the maximum fares. “The autorickshaw fare is Rs 13 per kilometre. We can’t offer rides cheaper than that,” he added.