Following cab aggregator Uber’s petition to the state, challenging a cap on its fares in Maharashtra, its competitor Ola too will follow suit and send suggestions to the government by November 5 one o
Following cab aggregator Uber’s petition to the state, challenging a cap on its fares in Maharashtra, its competitor Ola too will follow suit and send suggestions to the government by November 5 one of which will be in favour of surge pricing.
The app-based taxi service providers such as Uber, Ola, Taxi for Sure, TabCab are upset the government is trying to regulate surge pricing, wherein the cab companies increase fares when demand is more than the supply. The fares are then calculated according to the availability of taxis in a particular area using an algorithm.
In a meeting with transport commissioner Praveen Gedam last month, Ola had put forward its demand that the surge pricing is crucial to its business and should remain untouched.
Sources within Ola said the company was now gearing up to push its ‘Share Ola’ scheme in a big way to make up for losses incurred, in case surge pricing is capped. “Till now, there is no cap on how many seats a vehicle can have under various parameters; hence we hope if surge pricing is regulated, the driver is able make up for the loss in business by running share services,” a source said
Pranay Jivrajka, chief operating officer, Ola, said, “We will send in our suggestions to the government. We cannot divulge the issues we will be raising in the draft, but we hope the state will take note of our suggestions before finalising anything.”
The government has asked all stakeholders, including the radio taxi services and unions, to give their suggestions before November 5, which is the deadline for the same.
