After cab aggregator service providers Ola Cabs and Uber, on demand auto aggregator Jugnoo has also withdrawn surge price in Delhi. Jugnoo said the decision was made in the wake of Delhi government s expected policy for on-demand taxi service providers and imminent ban on surge price. Jugnoo however defended the concept of surge price stating it helps smooth travel for people, especially when there is crunch of cabs and autos during the ongoing odd-even in the national capital. Also Read - Uber cab service resumed in 31 cities in India with new Lockdown 4.0 guidelinesAlso Read - Uber launches 'Uber Connect' package delivery service to rival Dunzo and Swiggy Genie
We firmly believe that surcharge is a part of the business model and that permanently banning it will negatively impact companies like ours. A better way to handle the situation would be to put a cap on the surge amount, said Samar Singla, Founder and CEO Jugnoo.
Delhi Chief Minister Arvind Kejriwal had warned the taxi hailing service providers against the surge pricing. Describing surge as daylight looting, he said the cabs violating the government directives will be impounded and licenses would be cancelled. Following the government warning, Ola Cabs and Uber had withdrawn surge price in Delhi.
It is worth noting that Delhi is the second state in the country, after Karnataka, to have stopped surge price. In Karnataka as well, the state government has come down heavily on these service providers and is even mulling a policy for regulating them.
Like Jugnoo, app-based cab aggregators have defended the surge price saying it ensures more cabs on the road and ultimately helping people to get public transport when they need the most. Surge pricing is a standard practice across different industries like airlines and movie ticket bookings. And app based transport aggregators are not doing anything which is beyond comprehension, added Samar Singla of Jugnoo.
That said, it seems the Delhi government may soon bring laws to curb surge price in the capital. According to reports, Uber officials have held meeting with Delhi CM on the same issue. It remains to be seen how will a ban will impact these service providers and commuters.