Karnataka State Government Introduces Uniform Cab Fare Structure

On February 04, 2024, the Karnataka State Government rolled out a new fare regulation for cabs in Bengaluru, which includes both app-based services like Ola and Uber as well as traditional city taxis. This comprehensive fare structure replaces the various pricing systems earlier in place, bringing a simpler, three-tier slab based on vehicle cost. The…


On February 04, 2024, the Karnataka State Government rolled out a new fare regulation for cabs in Bengaluru, which includes both app-based services like Ola and Uber as well as traditional city taxis. This comprehensive fare structure replaces the various pricing systems earlier in place, bringing a simpler, three-tier slab based on vehicle cost. The notification issued against surge charges stipulates that fares be calculated solely based on rates defined by the government, and any non-authorised charges have been strictly prohibited.

In the revised fare system, vehicle value dictates the base fare for the initial four kilometers and the per-kilometer rate thereafter. For example, vehicles valued up to ₹10 lakh start at a base fare of ₹100 plus ₹24 for each additional kilometer. Vehicles between ₹10 lakh and ₹15 lakh and those above ₹15 lakh have different initial and per-kilometer fares. Hemanth Kumar, Additional Commissioner of the Transport Department, highlighted the key changes, including uniformity between app-based cabs and city taxis as well as the elimination of the non-AC category.

Waiting charges and toll fees are standardized, with the first five minutes being free and a ₹1 per minute charge thereafter. GST and nighttime surcharges are also addressed, with a 5% GST on services and a 10% surcharge for nighttime rides. Tanveer Pasha of the Ola Uber Drivers’ and Owners’ Association appreciated the move towards uniform fares, emphasizing the need for balance between driver earnings and passenger costs.

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