Cab threat may drive KSRTC and BMTC to slash AC bus fares by 20%-45%
BENGALURU: Your long-distance AC bus ride in the city could soon get cheaper. To combat the threat from cab aggregators like Ola and Uber, BMTC is working overtime to attract passengers to its AC services and believes the surest way is to start with fare cuts.
According to BMTC officials, AC bus fares may be slashed by 20%-25% for Stages 1-10 and 35%-45 % for beyond Stage 10 (2kms constitute a stage).
BMTC also plans to offer 20%-30% discount for group travellers (three or more tickets) in the Vayu Vajra AC airport service. However, its earlier plan of launching Happy Hours to offer discounts for passengers during non-peak hours was shelved in the absence of technology to calibrate ticketing machines.
BMTC chairman Nagaraj Yadav said: “We want to make AC rides affordable for people and also to increase occupancy rate in these buses. The revenue from long-distance AC buses has reduced after the entry of private cabs and fare reduction will attract more passengers”.
KSRTC recently slashed fare for its Flybus service from Rs 800 per ticket to Rs 700 if three or more tickets are booked together. “We’ll soon offer discounts for group travelers in the Vayu Vajra AC airport service. Many group passengers use private cabs since that’s cheaper than a Vayu Vajra,” he said.
Yadav said they haven’t finalized fare reduction. “We’re conducting a survey to come up with attractive pricing. The revised fares will come into effect after considering various aspects as well as feedback from passengers. There are also plans to reduce non-AC bus fares,” he added.
In April, BMTC reduced minimum fare in AC buses from Rs 15 to Rs 10. The corporation also tweaked fares of several stages to overcome the change problem. However, shared services offered by private cabs like Ola and Uber offer a cheaper ride than BMTC’s AC buses. For instance, the fare from Kempegowda International Airport to Electronics City in a Vayu Vajra bus is Rs 300. However, a cab ride, which can be shared by four passengers, costs around Rs 900.
BMTC’s passenger revenue has reduced from Rs 1,994 crore in 2014-15 to Rs 1,770 crore in 2016-17. Though it does not have revenue break-up for AC buses, the reduction is an indication of passengers shifting to private vehicles and cabs. BMTC has the highest fare in the country and activists have been demanding a reduction.
