Un-fare policy

Why it may take a Bangalorean 37 tries to book a cab

Traffic rules are seen as mere suggestions for drivers and riders in Bangalore. In the same vein, principles of economics are considered as an optional extra while formulating policies. Both are more honoured in the breach than observance.

A recent doozy is the Karnataka govt decision to fix the prices for taxis in Bangalore based on the cost of the vehicle. What is idiotic about this? For one thing, we have centuries of literature on govts trying to meddle with prices and fix them. And for centuries, govts have failed in doing so.

Alauddin Khilji tried to fix prices for all essential items for his soldiers (so that he could pay less for them). Then he expanded this to most items in the market. Black markets soon emerged, as they invariably do. Khilji had to create an elaborate spy network to catch people who were charging more than the set prices and punish them, including beheading them and displaying the divorced heads at south Delhi’s Chor Minar.

Whatever be our differences on Karnataka govt, we can perhaps agree that it cannot pull off an elaborate spy network to catch errant taxi drivers. Bangalore traffic police, bless them, are a very tolerant lot.

Both a massive 10-wheeled truck and a tractor can merrily go in the wrong direction even on the city’s busiest streets. Sadly/thankfully, there simply isn’t enough state capacity to check the fares charged on every taxi ride.

Should we laud non-discriminatory approaches to policy-making? The problem is that without discrimination, govt has tried to fix prices for cabs like they had done with autos about 50 years ago. With one stroke, all the complexity of price determination based on time and distance of route, traffic conditions, demand and supply of cabs, and weather conditions has been reduced to a simplistic formula based on cost of vehicle.

How long before drivers get fake invoices that inflate the purchase cost of their vehicles? And how long before an Ola driver demands one-and-a-half on the meter?

So, the next time you don’t get a ride during peak hours or when it is raining despite 37 attempts or when you spiral into self-doubt as the 8th Uber driver cancels on you, rest assured that it’s not you, it’s not even them. It’s Karnataka govt helping you. With Khilji-era tools instead of algorithmic matchmaking.

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