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More troubles for Ola and Uber as Delhi government seeks banning surge price permanently

The Delhi government is looking at banning surge pricing by cab aggregator services like Ola and Uber. The ban will reportedly be extended after the odd-even days.

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Taxi hailing services Uber and Ola Cabs had temporarily halted their surge pricing after the Delhi government issued a strict warning against these service providers for the same. Withdrawal of surge pricing was believed to help daily commuters during the ongoing odd-even days. But it in fact had an adverse impact with lesser number of cabs being available shortly after the two service providers announced the decision. Now the Delhi government could extend the ban post the ongoing odd-even days. Also Read - Uber cab service resumed in 31 cities in India with new Lockdown 4.0 guidelines

Also Read - Uber launches 'Uber Connect' package delivery service to rival Dunzo and Swiggy Genie

Also Read - Uber to operate 'Essential' cab service to hospitals and pharmacy stores in 4 cities

The decision comes after Chief Minister Arvind Kejriwal s tweets that slammed Ola, Uber and media houses for supporting the surge price. In a series of tweets, Delhi CM Arvind Kejriwal pointed out that the government is not against these taxi hailing services but at the same time they should abide by the law.

Kejriwal may be referring to the government norms for fares by radio taxi providers. For economy radio taxis, maximum fare is 12.50 per km whereas non-AC and AC kaali peeli taxi charges are Rs 14 and Rs 16 per km for respectively. Moreover, cabs with radio taxi label can charge up to Rs 23 per km. While the base price for Ola Cabs and Uber service start as low as Rs 6 per km, surge helps shoot up price up to Rs 40 or even higher when demand is higher. Here are some of his tweets.

 

 

 

In case you haven t been following the surge price controversy, here s a recap. Uber and Ola Cabs had come under severe criticism after commuters grappled with lack of cabs and massive surge price on the first Monday (April 18, 2016) of the ongoing odd-even scheme in Delhi. Following backlash, the Delhi government warned these service providers of controlling surge price failing to which it would seize vehicles and cancel permits. The two taxi hailing services on Tuesday succumbed to the pressure and announced temporarily shutting down the service.

FROM EARLIER: Uber and Ola need to find the middle ground with surge pricing

Following the suspension of surge price, several commuters complained that there were no cabs available for booking. It is worth pointing out that the taxi hailing services have insisted that the surge price benefits people as it encourages drivers to take extra trips and ultimately have more cabs available for customers. Uber says most of the money from the surge price goes to the drivers

That said, Delhi has become the second state after Karnataka to impose a ban on the surge price. The Karnataka government is already taking several strict measures against these service providers for failing to abide by the government guidelines.

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  • Published Date: April 20, 2016 5:18 PM IST



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