Delhi HC: Ola, Uber Cannot Charge More Than Government Prescribed Rates

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The Delhi High Court (HC) made it clear to online taxi aggregators like Ola and Uber that they cannot charge customers more than government prescribed rates. The issue was raised on the fact of 'surge pricing' that cab companies demanded during peak hours.

Both companies were put on a notice by the HC on Monday for surge pricing and Justice Manmohan demanded an affidavit from both companies that they will not charge more than what the AAP government and the Transport Department have prescribed.

The lawyer from Ola Cabs, which is owned by ANI Technologies assured the HC that the company does not over charge customers and follow the prescribed rates by the government. The new policy by the government for radio taxis and taxi aggregators prohibits some practices followed by Uber and Ola.

Following the HC rule on Monday, the court has given both companies time till August 9 to file the undertaking.

As per government prescribed rates, the taxi rates are as follows:

  • Rs 12.50 per km for Economy Radio Taxis, while
  • Rs 14 per km for non-AC black and yellow top taxis
  • Rs 16 per km for AC black and yellow top taxis
  • Radio Taxi cabs (which have a board that reads 'Radio Taxi') is Rs. 23 per km
  • Additional night charge of 25 percent of the fare (from 11pm to 5am)
Read more on: #auto news
Story first published: Tuesday, July 26, 2016, 9:30 [IST]
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