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Govt's formula to cap surge price: Thrice the kaali-peeli per-km fare

The state transport department is mulling over a cap on surge pricing at thrice the per-kilometre fare charged by yellowtop taxis, which is Rs 14.75.

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Govt's formula to cap surge price: Thrice the kaali-peeli per-km fare
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The dynamic pricing that cab aggregators have relied on to make you cough up unreasonably high fares could soon get static.

The state transport department is mulling over a cap on surge pricing at thrice the per-kilometre fare charged by yellowtop taxis, which is Rs 14.75.

Surge pricing, a concept that allows prepaid cab operators to puff up rates on the basis of demand, especially during rush hours, has been a bugbear for passengers.

But the suggested ceiling may not bring the expected relief to thousands of people commuting in Uber or Ola regularly, for two reasons. One, it is remarkably high. Two, it means app cab fares would depend on black-and-yellow taxi fares, which are hiked routinely when unions agitate for a fare revision.

The transport department has tossed up the 'threefold' cap roughly two years after the BC Khatua Committee suggested some fare slabs for in a report in October 2017.

Department sources confirm the idea is that the highest fare passengers can be charged should be thrice the per-km kaali-peeli fare.

There is no fixed fare slab for cabs aggregators. Commuters complain that the charges fluctuate wildly, unpredictably and frequently through the day.

Other than the fact that the high ceiling may not rationalise prices as much as commuters would like, app cab fares being subject to the whimsy of taxi unions is not ideal.

Just earlier this month, unions demanded that the per-km rate be raised from Rs 14.75 to Rs 20, and the base fare from Rs 22 to Rs 30.

A decision on the demand is due next month.

RECO NIXED

  • In Oct 2017, Khatua Committee’s report stated that open-end surge pricing rewards the driver, but not the commuter 
  • To avoid astronomical fare hikes, the panel recommended a ‘floor fare’ per km (regular period) and a ceiling fare per km (maximum chargeable) 
  • But the government has quashed the recommendation and suggested a cap at three times the per-km fare charged by kaali-peeli cabs.
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