After auto-rickshaws, Bengaluru to get metered taxis? Here's all you need to know: Report

Bengaluru cab drivers are transitioning to government-regulated metered fares to combat high commissions from ride-hailing companies like Ola and Uber.

In Bengaluru, a small group of cab drivers is switching to government-regulated metered fares, pushing back against high commission fees imposed by ride-hailing giants like Ola and Uber. Drivers argue that aggregator apps cut into their earnings, leaving them with only a fraction of the fare, as reported by The Indian Express. This new shift is backed by Karnataka’s recent fare regulations, which standardize minimum rates based on vehicle cost.

This shift, supported by Karnataka’s fare regulations, aims to ensure drivers retain more earnings while competing with dynamic pricing models of aggregators. (HT File Photo)

Under the regulation, taxis valued under ₹10 lakh have a minimum fare of ₹100 for the first four kilometres, with ₹24 for each additional kilometre. Vehicles priced higher have slightly increased rates. Despite these rules, aggregators' dynamic pricing models still dominate, often leading drivers to charge higher fares to offset commission cuts, the report stated.

Brand Pride Mobility, led by CEO Niranjanaradhya N, is facilitating this transition to metered cabs, working with 200 drivers ready to adopt the commission-free model.

“We have been hearing concerns from a lot of cab drivers over the years of high commission rates charged by cab aggregators which is impacting their overall earnings. When a ride costs ₹600, the driver ends up getting only between ₹400 and ₹420. This is why we are working with a small group of cab drivers who are ready to switch to metered taxis and willing to operate in line with government-fixed fares. This ensures that the drivers can keep the full earnings to themselves on a zero commission model,” he said, as quoted by the publication.

Brand Pride is also collaborating with meter providers to offer meters at reduced prices, easing the shift for drivers.

As drivers begin to embrace the metered model, Bengaluru’s ride-hailing scene may see a significant shift, with both traditional and app-based models competing to provide fair, efficient service for drivers and passengers alike.