App-based cab providers like Uber and Ola claim to offer rides as low as 7 Rupees per Kilometer for their hatchback cars. However this is a smart technique and the cab providers are forcing passengers to pay as much as 15 Rupees per Km. The companies come up a different pricing for the first four Kms ride and then bring in this 7 Rupees rate.
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Additionally passengers are charged 1 or 2 Rupees per minute as ride charge. The companies come up with Peak Charges during the busy times and also add service charge during that time. On an average, passengers end up paying 15 Rupees per Kilometer with all these hidden charges included.
The foray of app based cab services killed the traditional autowallahs and cabwallahs big time in the city. The cabs operating in the old system are under severe losses and many of them have shut shop unable to compete with this giants. On the other side, there are allegations that these app based cabs violate the riles of the state transport rules.
