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Ola-Uber travel can be expensive, customers will have to pay 5% convenience fee on every ride

Following a decision by the Karnataka High Court, cab and auto rides in the state may now become costlier by 5 per cent. In fact, the government has proposed in the Karnataka High Court on November 25 to charge cab aggregators like Ola, Uber and Rapido a convenience fee of 5 per cent on every ride taken by a customer.

As per reports, the Karnataka High Court may allow the transport department to charge a 5 per cent convenience fee on every cab ride. This is going to have a direct impact on cab drivers and customers. The final decision regarding the facility fee is to be taken by the Karnataka High Court.

The Karnataka government has fixed a minimum fee of Rs 30 for auto rickshaws. After which a fee of Rs 15 per kilometer will be charged. Now it has been proposed to charge a convenience fee of 5 per cent from the customers.

The commission fee and license of app-based auto aggregators Ola, Uber and Rapid has been under debate for several months. The next hearing in this matter will be on November 28. Earlier, the government had agreed to the interim orders of the Karnataka High Court to cap the commission charged by the aggregators at 10 per cent.

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However, the Karnataka Cab Aggregators Association does not agree with the government’s decision. The association says that the government should have amended the Karnataka On Demand Transportation Technology Aggregators Rules as there is no provision for autorickshaws.

The association has also accused the Transport Department of not giving complete information to the High Court. The Cab Aggregators Association says that if the transport department had given proper information to the court, the court would have directed the government to amend the rule.

In the current scheme, the per kilometer charge for autorickshaw ride is Rs 15. In Bengaluru, a per kilometer ride will cost around 80 paise after adding GST plus a five per cent convenience fee.


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