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The transport department decided the fee after consultation with various stakeholders. | Photo credit: File photo
The Transport Department on Friday (November 25) issued a notification fixing the service fee for auto services offered by mobile app-based taxi aggregators Ola, Uber and Rapido. The aggregators may charge consumers a service fee of 5% of the auto fare as determined by the authorities and applicable GST, it said.
Officials say that aggregators are currently charging 15% as service fee (including 5% GST) as per Karnataka High Court orders. As the service fee is fixed, the charges will decrease.
Transport Secretary NV Prasad said, “The service fee has been fixed as per the provisions available in the regulations and it will be effective immediately. Taxi aggregators have to follow the norms of charging service fee from passengers.
In 2021, for Bengaluru city, the Regional Transport Authority has fixed the base fare at ₹30 for the first 2 km and ₹15 per km thereafter.
Regional transport authorities (headed by deputy commissioners) have been directed to take service charge and GST into account while fixing auto fares, a notification issued on Friday said.
Meeting with stakeholders
The transport department decided the fee after consultation with various stakeholders like taxi aggregators, auto driver unions and general public as directed by Karnataka High Court.
In the first week of October, the department ordered the suspension of auto services after receiving complaints against taxi aggregators of charging exorbitant fares. Aggregators are allegedly charging ₹100 as base fare for 2 km. The aggregators challenged this order in the Karnataka High Court. Court allowed charging of 15% (inclusive of 5% GST) as user fee for providing auto services.
Mixed response
Taxi aggregators are likely to appear in the red due to the state government’s move. Sources in the aggregator said that a 5% service fee is not sustainable for them.
An Uber spokesperson said, “We are yet to see the government’s proposal. But as we mentioned earlier, any commission limits must be financially sustainable to run operations. If our costs can’t be covered by commissions, we need to find ways to offload costs that affect the experience of drivers and riders. During the consultation meeting, the aggregators demanded a user fee of 20% to 25%.
Some commuters who use app-based auto services say that 5% of the auto fare is reasonable. “It is good that the state government has finally fixed the service fee. A service fee of 5% and applicable GST appears to be available to users. We hope the aggregators will comply with the new rule,” said Sridhara Murthy, a regular passenger.
During a consultation meeting with the general public, many urged the state government to come up with its own mobile app that would protect the interests of drivers as well as passengers.
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