Surge Pricing By Uber & Ola Permanently Banned – Is Your City Doing it?

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The odd/ even vehicle rule is applicable in Delhi and is in its second phase. Delhi Government has introduced this scheme to lower traffic and also reduce vehicle pollution. Cabs, especially app-based taxi service providers are thriving in this environment.

Arvind Kejriwal, Delhi Chief Minister has confirmed that Surge Pricing cannot be applied by app-based taxi service providers. Currently, companies like Uber and Ola were applying surge pricing on trips. During surge pricing, the fare can multiply by several folds affecting final price.

Ola and Uber have introduced surge pricing simply to attract more drivers when the demand in a particular location is high. The goal of app-based taxi service providers is to offer its customers with a cab at any cost. Surge Pricing is determined by an algorithm developed by the app developers.

Usually during peak hours, customers experience humongous surge pricing. Delhi's Chief Minister believes that surge pricing is equivalent to broad daylight robbery. Arvind Kejriwal confirms that he will make sure that Surge Pricing will not return in the city of Delhi.

A new policy will be introduced and states that app-based taxi service providers will have to acquire a licence from the local government. Transport department will determine the fare charge, which cannot be altered. Permanent ban of surge pricing will also be a clause in the new policy.

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Story first published: Thursday, April 21, 2016, 17:16 [IST]
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