Hyderabad: Though app-based cab providers such as Uber and Ola claim they offer a rate of Rs 7 per km for their first category vehicles — the “mini” vehicles including Indica and Indigo cars — passengers end up paying Rs 15 per km. This is because of “smart” business pricing by the Uber and Ola managements.
The first 4 km of the ride is charged at Rs 90, which comes to Rs 22.50 per km. Thereafter, the fare is Rs 7 for every additional kilometre.
Passengers are charged an additional Rs 1 or Rs 2 per minute as ‘riding charge’, depending upon the category of vehicle. A commuter pays Rs 30 for a ride that lasts half-an-hour, apart from the fare.
The cab firms double the fare during peak hours or even increase it by four times in the name of high demand and shortage of vehicles. The peak hours are from 8 am to 12 noon and 4 pm to 9 pm and may extend up to 10 pm depending upon the occasion. Then, service charge is added to the bill.
Going by the rates that are hyped, a commuter travelling 10 km during non-peak hours should be paying a fare of Rs 70 at Rs 7 per km. In reality, the commuter ends up paying Rs 150, which works out to Rs 15 a km.
It is a win-win situation for both app-service providers and the drivers as Ola and Uber make their commission which can go up to 25 per cent per trip and the drivers get daily business.
Ola cab-share violates state transport rules: Operators
TS State Cabs and Bus Operators’ Association said that a cab-sharing scheme launched by the app-based cab service provider Ola was in violation of transport rules.
Under Ola Share, the driver picks up the first passenger and then two more passengers along the same route. The number of passengers is capped at three. All passengers pay Rs 4 per km.
“Only vehicles operated by the government or its undertakings can stop at different stages and pick up passengers. Ola and Uber cabs have to stick to the pick-up to drop-point rule,” Association president Syed Nizamuddin said.
Transport department officials said they were formulating guidelines to regulate app-based cabs, and these would be issued as a government order.
