Surge Pricing On Cabs Back In Delhi, Government Warns Of Strict Action

uber surge pricing
Cab Aggregator Uber brought back the surge pricing soon after the end of Odd-Even Second Phase.

One of the leading app based cab aggregator Uber brought back surge pricing in Delhi. This happened on the first day following the Supreme Court ruling on ban on the diesel run cabs in national capital. The kind of decision taken by the cab aggregator company has compelled the Chief Minister of Delhi Arvind Kejriwal, he has warned the company of ‘strong action’.

The second phase of ‘Odd-Even’ rule ended on April 30 and on the same day, the apex court declined further extension to its ban on CNG cabs plying on the roads of national capital. When the commuters had complained about the surge pricing during odd-even rule, Delhi government had asked the cab aggregator companies to put an hold on the price hikes. While, the price hike was not reported throughout the remaining phase of odd-even rule, the companies brought back the same soon after the end of it. Many commuters pointed out the price hikes in cab fares from May 1, while Uber officials maintained that the surge pricing feature was temporarily banned for odd-even rule duration.

Neither the public and nor Arvind Kejriwal is happy with the decision. Delhi CM Kejriwal had assured the public of Delhi that such kind of hike will not be considered. Following to the ban on a large number of diesel-run cabs, the demand of cabs has only increased and now the company has brought back fare hikes, only to add more problems.

surge pricing in ola
Screenshot of Ola App

According to an Uber spokesperson, this suspension of the surge pricing was just a ‘temporary’ decision.

Another cab aggregator company, Ola displayed a message on the screen saying peak time charges might be applicable during the part of the day when the demand is high but that will be conveyed to the public when they are booking.

Entertaining on the complaints, CM Arvind Kejriwal warned the cab aggregator company that they will face strict action if the fare hikes are not reverted. Kejriwal had called the fare hikes a concept of ‘day light robbery’ and warned that the cabs would be impounded if found implementing surge pricing.

The companies have pointed that the surge pricing feature is implemented in order to serve the users effectively. When the demand of cab service is high in a particular area and not enough cabs are available, the prices are hiked so that the cab could be made available to the user without much delay. While the cab aggregator companies and government are fighting against each other, only commuters are at the receiving end of outcome.

Tags from the story
, , ,

Leave a Reply

Your email address will not be published. Required fields are marked *