Transport dept to suggest min fare for Ola, Uber cabs
Chiranjeevi Kulkarni, DH News Service, Bengaluru, Jul 25 2017, 0:22 IST
Ola and Uber drivers’ earnings will go up while passenger fares may see a marginal increase if the government approves the draft notification which will be submitted by the Transport Department within a few days.
The Transport department has come up with a draft notification setting minimum and maximum fares for app-based cabs taking into account the interest of all stakeholders.
The notification addresses a long-standing demand by drivers working with Ola and Uber who have staged a series of protests against reduced incentives and earnings.
“It has been prepared after a series of meetings with drivers and the companies while keeping in mind the interests of commuters. We held another meeting on Saturday to bring consensus among all the stakeholders. The draft will be finalised soon and submitted to the state government,” Transport Commissioner B Dayananda said but refused to give details.
“Any hike in fares in future can’t happen only through the Transport Department. There will be provision to update the fare when diesel prices go up,” the commissioner had said in the meeting, noting that the Goods and Services Tax will be in addition to the fixed fares.
Sources said the proposal was prepared by Joint Commissioner for Transport (JCT) Siddappa Kaller based on data provided by cab aggregators and drivers. “It was based on scientific calculations which included peak and non-peak hours, service and demand variations as well as operational costs of drivers, including the amount paid for servicing the vehicle,” Kaller said, but refused to confirm details of the proposal.
An Uber spokesperson refused to comment on a possible hike in fares but said, “We are currently evaluating the impact of the proposed recommendations. The future of our business depends on making Uber the most attractive choice for riders and driver partners. We are always committed to providing affordable rides.”
JTC J Gnanendra had previously recommended Rs 12 and Rs 14 as minimum fares for hatchback and sedan cars, respectively. The recommendation was delayed and the government asked the RTO to come up with a detailed draft notification.