Surge pricing by app-based cab aggregators in India like Ola and Uber have been a long term debate. Last year, during the odd-even car scheme, surge pricing was prohibited in Delhi but it is still practiced. Transport minister of Delhi, Kailash Gahlot has now said that the government will not allow surge pricing by cabs in the city. This is expected to be included in the Delhi government s City Taxi Scheme 2017. 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
TOI quotes Gahlot as saying, We will not allow surge pricing in the city. We are going to put a cap on the maximum fare that cabs can charge from passengers. App-based cab aggregators would, however, be slightly exempt from this as they would be allowed to charge a little over their base fare. Gahlot assures though that the extra surge price would be fixed and have to be strictly followed by the companies.
The question now revolves around what amount will be fixed for the surge price. It is speculated that the maximum fare these cab-aggregators can charge could go up to Rs 10 per km from the base fare. At present, Uber charges a base fare of Rs 40 which translates to Rs 6 per km up to 20km and Rs 12 per km thereafter. As for Ola, it also has a base fare of Rs 40 and charges Rs 6 per km up to 15 km and Rs 12 per km going forward. ALSO READ: Now you can book Ola, Uber taxis from kiosks within these 5 airports
BGR India reached out to Ola and Uber for a comment regarding surge pricing. Ola declined to comment, while Uber s response is still awaited. Surge pricing has been long argued majorly by Ola and Uber. At times when the demand for cabs is high, fares increase by up to even nine times the base fare. This has been the cause of battle not only between cab aggregators and the government but within the drivers as well. In February, Uber and Ola drivers went on a major strike, demanding bonuses, shorter working hours and limit the number of cabs registered on the app. ALSO READ: Uber and Ola need to find the middle ground with surge pricing