Bengaluru: New government rule will cost 30% more to commuters, says Uber

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Bengaluru, April 14: Uber on Wednesday, April 13 launched an online campaign against the Karnataka government new rule that curbs the surge pricing system. The company went one step ahead against the government's new rule and sent an email to Bengaluru cab users analysing their expenditure on travel from January to March.

According to the new rule of government, the commuters have to shell out more than the surge price system by the company. Commuters have to drill hole in their pockets for paying 30 percent extra than earlier surge pricing system of the company.


According to media reports, on April 2, the state transport authority (STA) implemented the Karnataka On-demand Transportation Technology Aggregators Rules 2016 which prevents companies from charging more than Rs 19.50 per km for AC cabs and Rs 14.50 for non-AC ones. The fare per km must be inclusive of all charges taxes.

Online taxi giant, both Ola and Uber have been charging a base fare of Rs 40-Rs 100 and waiting time fare and apart from surge peak hour pricing under which the commuters have to spend double or more than that during its peak hours.

The commuters who have traveled during January 2016 to March 2016 following the government rule have ended up by paying collective amount of Rs 25 crore.

Bhavik Rathod, General Manager, South and West India, Uber urged the commuters and told OneIndia,"The Government of Karnataka has taken a step forward in laying down sector specific regulations for mobility platforms like Uber."

"We have submitted our objections to the transport department in connection with the notified regulations and are engaged with the government. The government of Karnataka has shown immense support for businesses that harness technology and innovation and we are hopeful of progressive outcome", he added.

On the other hand, HG Kumar, Additional Commissioner, State Transport Authority, warned aggregators and said, "We are not in a position to entertain a fresh list of objections after the law has been implemented and if the online taxi aggregator have not applied for their licences as per the new rule, then they must have to pay a huge amount of fine and serve a jail term under section 183 of Indian Pennal code (IPC)."

Here's is the email that Uber has sent to its riders: 

"For an Uber to be there, when you need it

Uber is all about connecting you with a reliable ride, no matter when you need it. You've probably experienced trying to find a cab on a busy weekend night, a holiday like New Year's Eve, or a surprise thunderstorm. It's hard! Because when lots of people want a ride at the same time, you often have to wait a long time because all the available taxis are already busy.

Our goal at Uber is to ensure you can push a button and get a ride within minutes - even on the busiest nights of the year. And due to surge pricing, that's almost always possible.

Here's how it works

When demand for rides outstrips the supply of cars, surge pricing kicks in, increasing the price. You'll automatically see a "surge" icon next to the options such as uberGO, uberX that are surging. If you still want a ride, Uber shows the surge multiplier and then asks for your consent to that higher price-because transparency of our service is essential to Uber.

Surge pricing has two effects: people who can wait for a ride often decide to wait until the price falls; and drivers who are nearby go to that neighborhood to offer you an option to get a ride-for a little bit extra.

Nearly all surge profits go directly to drivers as part of their fares. As a result, the number of people wanting a ride and the number of available drivers come closer together, bringing wait times back down.

It's a bit of economics 101: supply and demand adjust in response to price changes. Surge pricing is not unique to us-airlines, hotels use the same pricing principles to match demand and supply.
On Uber, surge pricing means you always have the choice to get a ride when you need one."

OneIndia News

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