The AAP government on Wednesday announced that the ban on surge pricing, introduced for the ongoing odd-even car rationing scheme, will be made permanent and all app-based taxi aggregators will have t
The AAP government on Wednesday announced that the ban on surge pricing, introduced for the ongoing odd-even car rationing scheme, will be made permanent and all app-based taxi aggregators will have to charge fares being fixed by the government under a new policy.
The Kejriwal government’s move came after it received several complaints of surge pricing by Ola, Uber and other app-based cab companies.
Terming the surge pricing as “daylight robbery,” Delhi chief minister Arvind Kejriwal on asserted that overcharging and blackmailing won’t be allowed in Delhi. Under surge pricing, app-based taxi service providers like Ola and Uber hike rates when demand outstrips supply. “Yes. We will do it,” Mr Kejriwal tweeted in reply to a suggestion that the city government should continue with ban on surge pricing permanently.
In its reaction, leading taxi aggregator Uber criticised 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 maximises the number of trips and minimises 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 per cent of the trips in Delhi happened on regular fares, even during the first phase of the odd-even scheme.
“Not surging is saying citizens shouldn’t have the option. Not surging is saying we should be just like a taxi and be unreliable when people need us most. These are outcomes that take choices away from the consumer and make it harder to get around cities — these are outcomes that we put a lot of hard work in to avoid so that at least you have the choice if you want one. However, 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,” the company said.
The city authorities have impounded over 50 app-based taxis for overcharging customers since Tuesday. Officials said that 35 of 50 taxis were registered outside the city.
Mr Kejriwal clarified that the Delhi government was not against taxi aggregators that provide an important service to people, but asserted they will have to follow the law. “Surge pricing is daylight robbery. No responsible govt can allow that.”
City transport minister Gopal Rai said a policy will be introduced soon under which app-based taxi companies will have to charge fares fixed by the transport department. “The policy will be exclusively for all the app-based taxis providing services in the national capital. We will fix fares for them as we have done in the case of radio, economy cabs and black and yellow taxis. All app-based taxi services will be regulated,” Mr Rai told a news agency.
A senior official said several app-based cab companies are not registered with Delhi’s transport department, but still they are running taxis in the city. Under new policy, these companies will have to seek a licence to operate their taxis.
Another official said as most app-based taxi service providers, are not registered with transport department. “The overcharging violations do not apply to app-based taxi services as they are not registered with the government. However, the government will ensure that these operators do not charge exorbitant fares even after the second phase of odd-even scheme,” he said.
Meanwhile, facing severe criticism for “surge pricing” from the Delhi government, taxi aggregator Ola on Wednesday said it will offer free rides for its “Shuttle” bus service on April 22 and 29, under the second phase of odd-even scheme.
