Mangaluru: August 28, 2015: Ola cabs, the first taxi aggregator to operate here, hiked the minimum fare by 50% for mini’s (small cars), making its fares the highest in the state.
The minimum fare has been hiked from Rs 49 for 2km to Rs 99 for 4km. Ola charges Rs 80 for the first 4km in Bengaluru and subsequently Rs 10 per km. In Mysuru, it is still Rs 49 for the first 2km and Rs 10 for subsequent kilometre and Rs 80 for the first 4km in Hubballi-Dharwad and Belagavi and Rs 9 per km thereafter. Ola has, however, reduced the rate for subsequent kilometre to Rs 9/km from Rs 10/km in Mangaluru and Rs 11/km from Rs 12/km for sedans.
Earlier, the fares were comparable with autorickshaws for a 10km ride.
An Ola employee familiar with the operation said: "When we did the calculations for return rides for drivers, which are mostly without customers (dry runs), they were expensive. It was more so for long drives due to the topography for places like the airport, Deralakatte or NIT-K in Surathkal. We cannot demand 1.5 times the fare as card rates are charged. But the subsequent kilometre charge has been reduced by a rupee. This is a win-win for both, since drivers will benefit in short drives and customers will benefit for long drives. Keeping both things in mind, we came up with this change. Bengaluru is a big place and the percentage of getting return ride is quite high, unlike here.’’
This change was also brought about after a fixed model was changed into a commission model, where drivers felt they were being short-changed during dry runs. The aggregator is also adding more vehicles to its fold. As of now, Ola runs about 200 vehicles, a big change from the 35 it had a few months ago.
Sources said this price may see a correction when new taxi aggregators arrive on the scene. With the new rates, an airport ride will cost about Rs 230, unlike earlier when it would cost about Rs 200.