Bengaluru auto rickshaw fares to rise? Will Ola, Rapido, and Uber be affected?

Commuters may see a price hike for auto rickshaws in Bengaluru soon. It is possible as auto drivers’ unions in the city have been pressing for rising fares “to keep pace with inflation”. The Regional Transport Authority (RTA) has also set up a meeting with auto unions in the city on December 23. Both the parties will discuss a possible revision, which will be beneficial for auto drivers as well as commuters.

As per their demands, drivers are pressing demands of increasing the minimum fare from INR 30 to INR 40 for the first two Km. Then, INR 15 to INR 20 for every subsequent Km, reported MoneyControl. According to them, the last fare revision took place in December 2021.

"The prices of new auto rickshaws have skyrocketed in Bengaluru. The fares for the auto rickshaw have been revised only twice (2013 and 2021) in the past decade, failing to keep pace with inflation," said D Rudramurthy, general secretary of Auto Rickshaw Drivers' Union (ARDU). As of now, the price of auto LPG in Bengaluru is now INR 61.49 per litre," the media report quoted.

Apart from that, drivers have argued that rising LPG prices, maintenance costs and daily expenses have made the current rates unsustainable.

"If the revision of the auto fares took place every year, and had the enforcement improved, both drivers and passengers will benefit. Not only will it offer fair rates, but also make autos more available. This will potentially ease off Bengaluru’s traffic by encouraging public transport use," he added.

A senior transport department official acknowledged the demands, saying, "We will review the drivers’ requests during the meeting and make a decision." A 50% extra charge is likely for night rides (from 10 pm to 5 am).

Ola, Rapido and Uber Prices
This means fares for aggregator firms like Uber, Ola, and Rapido will also rise. Until October 2022, auto aggregators were charging over INR 100 as the minimum fare, prompting the Karnataka High Court to step in. After the commuters raised the issue, the transport department issued notices asking aggregators to stop operating autos unless they obtained a separate three-wheeler licence.

This was later challenged by the aggregators in court. The High Court later allowed them to run autos, charging 10% above the government's base fare plus 5% GST. This reduced the minimum auto fare in Bengaluru, operated by aggregator services, to Rs 35.

If the base fare rises from INR 30 to INR 40 for the first 2 km, aggregators will likely increase their charges after getting court approval.