Why IT industry body sent mail to Karnataka government on Ola, Uber pricing – ET Auto

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Nasscom’s blog post followed a letter from the Internet and Mobile Association of India (IAMAI) on Feb 15 which had requested an industry-wide consultation on the new taxi fares.

Almost a month after the Karnataka government announced uniform fares for cabs operating under aggregator rules by companies like Ola and Uber, as well as for city taxis (non-app-based city taxis), IT industry body National Association of Software and Service Companies (Nasscom) has written to the state government to review the structure. Nasscom is Indian IT industry’s apex body. It’s members include TCS, Infosys, Wipro, HCL Tech all other major players in India’s software industry.In the letter, Nasscom has urged the Karnataka government to review the uniform fare structure for taxis that it had notified in early February, raising concern over aspects such as taxi aggregators not being allowed surge pricing.

In a blog post dated February 29, Nasscom’s deputy manager of public policy and government affairs Garima Prakash welcomed the “progress in the minimum fares applicable for rides up to 4 km” but contended that the new rules did not take into account the value addition by app-based taxi aggregators and treated them in the same manner as non-app-based city taxis.

Nasscom’s blog post followed a letter from the Internet and Mobile Association of India (IAMAI) on February 15 which had requested an industry-wide consultation on the new taxi fares.

“The higher fare for app-based taxis considered the added value (such as route tracking, ride-sharing feature and customer care services) offered… However, the new fare structure mandates the same fare for app-based and non-app-based taxis, thereby making it tougher to offer and improve value added services,” said the Nasscom blogpost.

Both the concerns were also raised by the IAMAI in its letter to the Karnataka government.

Nasscom further said it had suggested the government restore dynamic pricing. It added that if the restoration was likely to take time, then app-based taxi aggregators should be allowed to charge a commission or service fees “in addition to the notified fares”.

New rules for cab fares in Karnataka
According to the new fare structure announced by the state government in Karnataka, taxi vehicles have been categorised into three classes based on the cost of the vehicle. As per the rules, cab aggregators are not allowed to collect surge pricing from passengers. The order reportedly further states that waiting charges for passengers will be free for the first five minutes, and after that, it will be Rs 1 for every minute.

  • Published On Mar 8, 2024 at 01:58 PM IST

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