K'tka govt to check 'exorbitant' pricing by cab aggregators

Karnataka transport department has framed guidelines on taming "exorbitant pricing" by cab aggregators, who allegedly demand over the top fares when the demand is high, Minister for Transport Ramalinga Reddy said today.
The draft copy of the guidelines is pending before the law department for approval, he told reporters here.
"The transport department has framed guidelines on tamingexorbitant pricing by cab aggregators. We have forwarded the draft copy of the guidelines to the law department last week.We are awaiting their approval," Reddy told PTI here.
"I wouldn't throw much light on it, but I would saythis much that that we have suggested some steps to be taken to curb unreasonable pricing by cab aggregators," he added.

Replying to a query, Reddy said the police do not enjoypowers to book app-based cabs for higher fares unless the transport department issues guidelines to them.
The high surcharge has made passengers furious and some of them are using the social media to vent their ire abouttheir experience of being charged even seven times the normal fare on certain occasions.

The government has come to know about the issuethrough media reports on cab aggregators demanding higherfares even on regular days, especially near IT hubs, Reddysaid.
The central transport department had directed statetransport authorities to issue guidelines to cab aggregators,but left the onus on each state to prepare regulations to suitregional requirements, the Minister said.

However, cab aggregators, for instance, Ola, in their official blog states that peak pricing is triggered when demand and supply is not met.
During certain timesof the day, when more traffic is on road, routine drivers tendto log out of the system to suit their convenience as there isno incentive for them to put an extra effort. Similarly, when demand suddenly increases, not enoughdrivers might be available on the road, it said.
Using advanced analytics, unique algorithm, past rideexperiences etc, the OLA software calculates an appropriatesurcharge to apply over and above the normal fare, the blogsays.
"They pointed out that synthesis of routes and employee

sharing will not only boost the cost saving purpose, but will also provide a better service to the passengers," the officer said.
Asked whether the integrated board would get a new name, the officer said "It's only the first step, but there are several technical and legal procedures to be taken which are simultaneously going on... And one legal firm is already working on it."
While CTC is a state-run company, which operates trams and buses in and around the city, CSTC operates buses both in the city and in some parts of the state to connect them with the city and WBSTC operates buses throughout West Bengal.

Meanwhile, TMC MLA Sourav Chakraborty would be the chairman for North Bengal State Transport Corporation (NBSTC), while another MLA Tamanash Ghosh has been appointed as the chairman for the South Bengal State Transport Corporation.