App Based Cabs: Delhi Government Plans To Make Ban On Surge Pricing Permanent

New Delhi: On Wednesday, the Delhi government announced that the surge pricing, introduced for the ongoing phase of the “odd-even” scheme, is “daylight robbery” and ban on it will be made permanent and all app-based taxi aggregators will have to charge fares being fixed under a new policy.

Delhi CM and Aam Admi Party (AAM) Chairman Arvind Kejriwal said overcharging and blackmailing won’t be allowed in Delhi. Under surge pricing, app-based taxi service providers like Ola and Uber hike the rates when demand outstrips supply.

In its reaction, leading taxi aggregator Uber criticized the move, saying without surge pricing, there would be no cars available when people need them. “Higher prices are required in order to get cars on the road and keep them on the road during the busiest times. This maximizes the number of trips and minimizes the number of people stranded. The drivers have other options as well. In short, without surge pricing, there would be no car available when people need it,” Uber said in a statement.

The US-based company said 92 percent of the trips in Delhi happened on regular fares, even during the first phase of odd-even scheme.
Transport Minister of Delhi, Gopal Rai said that a policy will be introduced soon under which app-based taxi companies will have to charge fares fixed by the transport department.

Meanwhile, surge pricing debate between the AAP government and app-based cab aggregators has severely affected the daily commuters. Several were left without an option as fewer cabs were available across the city and the waiting time for which was endless.