50 More Taxis Seized in Delhi, ‘Surge Pricing’ May Go

Kejriwal threatened strict action over surge pricing, which cab aggregators use to hike fares during high demand.

Uber asking for a surge charge of 4.7 times the normal rate. (Photo Courtesy: Twitter/@buzzindelhi)

Authorities in Delhi have impounded 50 more taxis for over-charging customers as Chief Minister Arvind Kejriwal hinted on Wednesday that “surge pricing” by cabs may face the axe forever. A government official said 35 of the 50 taxis were registered outside Delhi.

Transport Minister Gopal Rai said that the government has started working out modalities of the policy under which cab companies will be bound to charge fares which will be prescribed by the Transport Department.

The policy will be exclusively for all the app-based taxis giving their services in the national capital. We will fix fares for them as we have done in the case of radio, economy cabs and kali-pili taxis. All app-based taxi services will be regulated through this policy.

<b> Gopal Rai, Delhi Transport Minister</b>

The Delhi government had on Monday, seized 18 taxis belonging to Ola and Uber for over-charging commuters, taking the advantage of a leap in demand for taxis during the ongoing odd-even traffic scheme.

Kejriwal has threatened “strict action” over “surge pricing”, a technique used by the cab aggregators to hike fares in the event of high demand.

After Kejriwal’s statement on Monday, Uber and Ola suspended surge pricing.

Following Kejriwal’s statement, app-based cab operator Uber blamed the Delhi government for taxi shortage, Kejriwal clarified that his government was not opposed to online aggregators but insisted they obey the law.

He alleged that one of the media houses supporting “surge pricing” had invested Rs 150 crores in one of these taxi aggregators, though he did not name a particular media house.

The demand for taxis has shot up in the capital on account of the odd-even traffic scheme that will run till 30 April

Restrictions on diesel and petrol driven cars during the ongoing scheme has forced thousands of motorists to depend on taxis for their commute.

Kejriwal has termed the surge pricing as “daylight robbery” and blamed the companies for “openly blackmailing” the Delhi government.

A senior official said that several app-based cab companies, including Ola and Uber, are not registered with the Delhi government Transport department, but they are still running their taxis in the capital.

The overcharging violations do not apply on app-based taxi services as they are not registered with government. However, government will ensure that these operators do not charge exorbitant fares even after the wrapping up of odd-even scheme.

Government Official

Under the new policy, these companies will have to seek a licence to operate their taxis. The government’s move comes after it received several complaints of surge pricing by Ola, Uber and other companies since the second phase of odd-even was implemented.

(With inputs from IANS and PTI.)