Cab Fare Hike At Bengaluru Airport: Uber, Ola Users Hit by 40% Increase

Cab rides from Bengaluru's Kempegowda International Airport (KIA) have become more expensive as Bengaluru International Airport Limited (BIAL) has increased the airport pick-up fee by 22-40% for app-based aggregators like Uber and Ola. This hike comes as part of the renewal of BIAL's concessionaire agreement.

According to moneycontrol report, Uber's airport pickup charge at Terminal 1 has risen from Rs 187.62 to Rs 260.78, while Ola's 'transport hub charge' per trip has gone up from Rs 172 to Rs 215. It remains unclear whether BluSmart has increased its charges from the current Rs 218 per trip.

A source also noted that pick-up charges at Terminal 2 (T2) are higher than at Terminal 1 (T1), with Uber's pick-up fee increasing by 23% at T1 and 40% at T2. The increase for both aggregators ranges between 22% and 40%.

Uber, Ola, and BluSmart handle over 70% of all airport trips in Bengaluru. While Uber has begun informing riders of the increased pick-up fees at Bengaluru airport, Ola and BluSmart have not yet commented on the changes.

Uber clarified in a statement that the increased pick-up fee is passed on directly to the airport as part of its commercial agreements, with Uber not retaining these charges. The statement emphasized transparency, noting that riders are informed of the revised fares upfront at the time of booking.

BIAL, which manages KIA, stated that all authorized cab services at KIA, including KSTDC, Ola, Uber, Refex Mobility, WTI, COR, and BluSmart, are selected through a rigorous techno-commercial bidding process. The concession charges are based on the operators' business plans during the tender process. BIAL also noted that ground transport operators at the airport must comply with license conditions set by the State Transport Department.

In May 2024, BIAL introduced an entry fee for both private and commercial vehicles, which included stay and overstay charges for those accessing the arrival pick-up lanes at Terminals 1 and 2. However, this plan was suspended following protests from drivers, backlash from passengers, and online criticism.

Bengaluru Airport is 64% owned by Fairfax India Holdings Corp, led by Canadian billionaire Prem Watsa. Siemens holds a 10% stake, while the Airports Authority of India and the Karnataka State Industrial and Infrastructure Development Corporation each hold a 13% stake.