Commuters say that while they understand fares can increase during periods of high demand, the pricing mechanism used by app-based aggregators is often unclear

Fare play: The use of dynamic pricing on digital platforms makes it difficult to determine how much of the fare represents the prescribed rate and how much is being added as a surge component, say commuters. | Photo Credit: File photo
Weeks after the Union government moved to curb misleading pre-ride “advance tipping” prompts on app-based transport platforms, commuters in Bengaluru are now seeking government intervention over another pricing issue: surge fares charged by cab and auto aggregators.
Commuters say that while they understand fares can increase during periods of high demand, the pricing mechanism used by app-based aggregators is often unclear. They want the Transport Department to ensure greater transparency in how additional charges are calculated and displayed to passengers.
The concern comes despite the uniform fare structure fixed by the government for autorickshaws, which commuters say was intended to provide greater certainty over fares. According to them, the use of dynamic pricing on digital platforms makes it difficult to determine how much of the fare represents the prescribed rate and how much is being added as a surge component.
Bhavana H.S., a Banashankari resident who regularly uses app-based auto services to commute to her office on M.G. Road, said she does not oppose surge pricing but wants passengers to be told clearly why they are being charged more. “We have seen something similar in the past, such as higher fares for late-night travel when meters were used. But with app-based surge pricing, I have no clear way of knowing what the actual base fare is, how much of the amount is surge and why that additional charge has been applied,” she said.
Need transparencyAnother commuter, Poojitha K. from J.P. Nagar, said passengers should be given a clear explanation whenever a higher fare is imposed. “For instance, it could say that a 20% additional charge has been applied because of heavy rain, or that a 30% surge is being charged because demand is particularly high. At present, passengers are simply shown the final amount, without enough information to understand how that figure was arrived at. If aggregators can calculate surge pricing in real time, they should also be able to explain it in real time. A transparent breakdown would allow commuters to understand what they are paying for instead of simply accepting an unexplained higher fare,” she said.
The issue has also drawn attention on social media. In August, several users complained online about app-based aggregators increasing minimum autorickshaw fares in Bengaluru, particularly after the Transport Department intensified its action against bike taxis.
The government-prescribed autorickshaw fare was fixed by the Regional Transport Authority (RTA) of Bengaluru Urban district in July 2025. Under the structure, the minimum fare was set at ₹36 for the first 2 km, followed by ₹18 per km thereafter. Waiting charges are not applicable for the first five minutes.
Need of clear regulatory frameworkTransport expert M.N. Srihari said the government needs to establish a clear regulatory framework specifically addressing how digital aggregators determine and apply surge fares. “The government should immediately bring in clear rules governing surge pricing by app-based cab and auto aggregators and ensure that the framework is implemented strictly. Regulation cannot stop with fixing the basic fare; it must also address how digital platforms apply additional charges over that fare,” he said.
“Aggregators should be required to clearly disclose the base fare, the additional surge component and the reason for the increase before a passenger confirms a ride. A transparent framework would give commuters clarity while also creating accountability for aggregators and operators. The government should also ensure that the rules are enforceable across platforms rather than remaining mere guidelines,” he added.
A senior Transport Department official said the department would take action based on complaints received from commuters.
Attempts by The Hindu to get responses on the issue from auto and cab aggregators went unanswered.
Published - September 22, 2026 08:25 pm IST