Despite High Court ruling, online auto fares remain high in Bengaluru

Bengaluru: Despite a recent favourable court order, the Transport Department is yet to enforce its 2022 notification specifying that app-based aggregators cannot collect more than 5% above the stipulated fares for auto rides in Bengaluru. 

On May 27 this year, the High Court of Karnataka dismissed writ petitions filed by ride-hailing firms Uber India Systems Private Limited and ANI Technologies Private Limited (OLA) seeking to quash the department’s notification dated November 25, 2022. 

The court also restrained the aggregators from charging surge pricing, stating that any such charges should benefit the permit holder/driver and not the aggregator. 

However, the aggregators continue to charge substantially higher fares, including surge pricing during times of peak demand. 

Sample this. A 6-km app-based auto ride from MG Road to Indiranagar during the evening rush on Thursday cost Rs 201, or Rs 33.5 per km. Similarly, a 21-km app-based auto ride from Indiranagar to Jalahalli during the evening rush cost Rs 516, or Rs 24.5 per km. 

The stipulated fares are Rs 30 for the first 2 km and Rs 15 for every subsequent km. 

If the stipulated fares (plus the 5% service fee and applicable taxes) were applied, the 6-km ride should have cost about Rs 100. The cost for the 21-km ride should have been no more than Rs 350. 

Citing various costs incurred in providing the service, Uber argued that an aggregator can levy any charge it deems fit, which should not be part of the fare nor regulated by authorities.

It also requested an increase in the per-km fare from Rs 15 to Rs 17, the minimum fare from Rs 30 to Rs 35, a pick-up charge of Rs 30 and a platform fee of 25%. 

While Uber has challenged the ruling, there is no stay order yet. 

Yogeesh AM, Commissioner for Transport and Road Safety, said the department wanted to do its “homework” before taking action. 

“We intend to enforce the notification, but only after we have concrete evidence about the violations,” he told DH. 

“Let’s say we stop an auto attached to an aggregator; how do we establish if it’s overcharging the passenger unless we have a break-up of the fare.” 

Yogeesh added that auto fares in the city are fixed by the Regional Transport Authority, which is chaired by the Bengaluru Urban deputy commissioner.  

He promised that the department would take action if it received information with a detailed break-up of the fares charged by app-based aggregators. 

Uber did not respond to requests for comment. OLA could not be reached for comment. 

Expert views

Independent mobility expert Satya Arikutharam wondered why Karnataka, where the rule of law is reasonably operational, has not complied with the court judgment.

“The Transport Department has failed (or doesn’t bother) to implement its own notification despite the court’s backing.

“Auto drivers do not go by the fare meter, which is a key condition of their permits. Aggregators do not follow the fare notification and unaware citizens pay fancy fares arbitrarily fixed by the aggregators,” Arikutharam said.