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Kolkata: Following a prod from the state transport department, mobile app-based cab provider Ola and Uber have agreed to slash their base fare and surge price with effect from 20 July.

Sources in the transport department said that the two cab providers have sent a communique informing the decision.

Going by this, Ola and Uber will now keep their surge price capped at 45 per cent of the base fare, instead of up to 290 per cent higher that is charged now.

The base fare will be capped at Rs 40. At present, Ola charges a base fare ranging between Rs 40-55 depending on the type of vehicle; Uber charges Rs 47.25-68.25.

As compared them, the regular metered taxis in Kolkata charges Rs 30 for the first two km and then levies Rs 3 for every 200 metres ride. Additionally, Rs 2 is charged for every 2.12 minutes wait during a journey. The fares of air-conditioned metered taxis are 25 per cent more.

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