SUGGESTIONS TO AUTORICKSHAW FARE FIXATION FOR RIDES BOOKED THROUGH APPS.

15th November 2022

Brief History of Aggregator Regulation in Karnataka

Since the petitioner aggregators obtained protection against any coercive action from the
Government in W.A.No.4789/2016 in December 2016, the Honourable High Court of Karnataka
has been hearing the petition challenging the constitutionality of regulations of the Karnataka
On-Demand Transport Technology Aggregator Regulations, 2016. It is unclear if the petitioner
aggregators have, as they stated to do so to the Honourable High Court on 13th September
2017, made any representation to the Government suggesting further modification of the rules
under challenge and arrive at an amicable solution. The case is still pending and has reached the
Final hearing stage and was last heard on 13th July 2022. The Central Government has also
impleaded as a party to the case.

October 2022

The Transport Department’s notices to aggregators to stop offering autorickshaw rides on their
platforms was challenged in the High Court (WP 20349/2022) by the petitioner aggregators.
Amongst other things, the Honourable High Court in its Interim order dated 14th October 2022
pertinently referred to the Motor Vehicle Aggregator Guidelines, 2020 issued by the Central
Government and stated ….” this Court is of the view that the Guidelines referred to above will
also be adhered to during the process of fare fixation.”

Suggestions:

1. Since the current autorickshaw fares fixed by the Government through the notification
dated 06.11.2021 issued by the Regional Transport Authority does not compensate the
autorickshaw driver for dead mileage and distance travelled and fuel utilized for picking up
the customers at their stated place, it is appropriate and therefore suggested to adopt the
Central Government’s Motor Vehicle Aggregator Guidelines, 2020 recommendation of fixing
3 kms as the minimum fare on rides booked through Apps. This means that based on the
current fares fixed by the Government, INR 45 will be the Base minimum autorickshaw fare
for rides booked on Apps.
2. The Central Government’s Motor Vehicle Aggregator Guidelines, 2020 allows for dynamic
pricing and suggests a range between 0.5 to 1.5 of the Base fare. For example, in Bengaluru,
the aggregator will be able to offer the minimum fare in the range of INR 22.50 to INR 67.50
to promote efficient asset utilization in accordance with the market forces of transport
demand and supply. The range of 0.5 to 1.5 of the Base fare is reasonable and therefore
suggested for adoption.
3. The autorickshaw fares are infrequently updated by the Transport Department. Therefore, it
is recommended to adopt the Central Government’s Motor Vehicle Aggregator Guidelines,
2020 suggestion of updating the base fare each year with the current year WPI.
4. It is also prudent, equitable and fair to adopt the Central Government’s Motor Vehicle
Aggregator Guidelines, 2020 which has proposed that at least 80% of the fare applicable on
each ride is given to the Driver and the remaining charges for each ride shall be received by
the Aggregator.

END OF DOCUMENT

SUGGESTIONS FROM SATYA ARIKUTHARAM, INDEPENDENT MOBILITY EXPERT -1-