Following backlash from commuters over steep surge pricing during Delhi s odd-even scheme, Uber has announced suspending surge pricing temporarily. Uber claimed that the livelihood of its partners was under threat, referring to the government warning of seizing vehicles and cancelling permits. Also Read - How to book your next Uber ride via WhatsAppAlso Read - Uber cab service resumed in 31 cities in India with new Lockdown 4.0 guidelines
Given the threat of the Delhi government to cancel permits and impound vehicles of our driver partners, we are temporarily suspending surge in Delhi with immediate effect. We hope to work with the government to keep Delhi moving especially during this time when the citizens need us the most, Gagan Bhatia, General Manager, Uber North told BGR India. Also Read - Uber launches 'Uber Connect' package delivery service to rival Dunzo and Swiggy Genie
On the first Monday of odd-even in Delhi, commuters faced severe problems with surge pricing going up to three times the usual rate and to five times during morning rush hour. Also, the two services are grappled with scarcity of cabs.
Given the threat to the livelihood of our partners, at the expense of reliability, we are temporarily suspending surge with immediate effect
Uber Delhi (@Uber_Delhi) April 18, 2016
We hope to work with the Delhi govt. to provide a reliable mobility option in the city, esp. at a time when the citizens need us the most
— Uber Delhi (@Uber_Delhi) April 18, 2016
Following wide criticism on social media, Delhi CM Kejriwal promised of taking strict action against the taxi services that charged rates more than the government prescribed rates. The actions included cancellation of permits as well impounding vehicles. The Delhi government has proposed Ola/Uber cabs to not charge more than traditional taxis.
Strict action, incl permit cancellation n impounding vehicle, to be taken against taxis which charge rates more than govt prescribed rates
Arvind Kejriwal (@ArvindKejriwal) April 18, 2016
Earlier, the traditional taxi and auto service providers had called for strike against the taxi hailing services. The auto rickshaw and taxi strike was called off after Delhi Chief Minister Arvind Kejriwal assured of action against these taxi-hailing services. On Sunday, the chief minister had assured taking strong action against these taxi services. He also said in a tweet that the government had received complaints against Ola Cabs and Uber.
The development comes shortly after the Karnataka government announced banning surge pricing in the state. According to reports, the government has already started taking actions such as seizing vehicles for violating the rule.