The long-awaited auto fare revision in Bengaluru officially came into effect on Friday (August 2, 2025), but instead of bringing relief or predictability, it has sparked widespread anger among daily commuters, particularly those relying on app-based aggregator platforms like Ola, Uber, and Namma Yatri.

While the Karnataka government had recently approved a moderate fare increase aimed at addressing auto driver concerns over rising fuel and maintenance costs, commuters say app fares have surged by 30% to 40%, often far exceeding the newly mandated rates.

Aggregators hike prices disproportionately

According to daily users, rides that earlier cost ₹80 to ₹100 for a 4 to 5 km trip are now showing prices upward of ₹130 to ₹150, even during non-peak hours. The sharp spike is not due to meter fare changes alone, but rather aggregator commissions, platform surcharges, and automatic surge pricing algorithms.

“The government notified only a small increase, but apps are charging double. It's unjustified,” said Ashwini Rao, a commuter who uses autos daily from Indiranagar to Domlur.

The revised fare structure notified by the Karnataka Transport Department now prescribes a base fare of ₹35 for the first 2 km, followed by ₹18 per km thereafter. Waiting charges are ₹1 per minute after the first 5 minutes, and night-time fares have a 10% premium.

However, these rates do not include aggregator commissions, which many say are the real cause of inflated final amounts. Several commuters also said they could not access accurate fare estimates on apps and were instead shown final prices without breakdowns.

Drivers defend new rates but blame aggregators

Auto drivers welcomed the fare hike but clarified they have no control over what apps charge.

“We are still running by the meter. But on apps, passengers are being charged more. That’s the company’s decision,” said Suresh M, an auto driver from Koramangala.

Driver unions have long demanded higher base fares, citing increased costs of living and vehicle maintenance. However, many now worry that passenger frustration could reduce ride bookings, hitting their income again.

Several drivers are considering leaving aggregator platforms altogether and returning to meter-based street hailing, which has seen a minor resurgence post-pandemic.

Government response and enforcement issues

Officials from the Transport Department said they are closely monitoring complaints and will act against aggregator platforms found to be violating fare norms.

“We have received feedback that apps are charging beyond the notified fares. If confirmed, penal action will be taken, including cancellation of licenses,” said Transport Commissioner K.T. Halaswamy.

However, implementation remains a grey area, as no clear cap exists on commissions or surcharges that apps can levy. Activists argue that aggregator-specific fare rules, approved in 2023, have not yet been fully enforced, leading to this regulatory gap.

Consumer rights groups like the Bangalore Commuters Forum have demanded that app platforms display fare breakdowns transparently and align charges strictly with government norms.

“App-based travel was supposed to be affordable and tech-friendly. Now it’s turning exploitative,” said Pranav Kamat, a software engineer.

Alternatives and commuter pushback

As a result of rising fares, many commuters are exploring cheaper alternatives such as:

• BMTC buses, particularly on metro feeder routes.

• Bike taxis on aggregator platforms, which are still more affordable.

• Namma Yatri, a not-for-profit open mobility app backed by Beckn Protocol, which reportedly sticks to government fares with zero commission.

Some residents have even taken to social media platforms like X (formerly Twitter) and Instagram to post fare screenshots, comparing prices across platforms and tagging officials and ministers in hopes of triggering action.

Long-term challenges in urban mobility

Urban transport experts argue that piecemeal fare revisions, without addressing deeper issues such as aggregator regulation, traffic congestion, fuel inflation, and driver welfare, will continue to alienate both drivers and riders.

While the aggregator economy has helped digitise and modernise urban mobility, unchecked algorithmic pricing, opaque commission structures, and lack of grievance redressal are increasingly eroding public trust.

The Karnataka government’s proposed Auto Aggregator Regulation Bill, still pending discussion in the assembly, is expected to bring clarity on fare caps, commission limits, and data transparency, but until then, daily commuters may continue to pay more than what’s officially prescribed.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.