Ola and Uber Suspend Surge Charges After Delhi Govt’s Tough Stance

Commuters reported surcharges of as high as three to five times the normal rate on the third day of odd-even phase 2.

Uber application on mobile. (Photo: Reuters)

The Delhi government has ordered the impounding of cabs, including Uber and Ola, if the taxi service providers are found charging more than the government prescribed limit, on Monday.

The order was issued after a complaint was filed in the Delhi HC by an organisation called Magic Sewa on Monday, by a bench of Justice JR Midha.

Delhi Transport Minister Gopal Rai had said that the Delhi government cannot control fares imposed by radio cabs that are registered outside Delhi. However, Rai had also promised “strict action” if any complaints are registered.

Also read: Odd-Even 2.0: Over 884 Violators on the First Day & Metro Snags

Delhi Chief Minister Arvind Kejriwal had promised strict action against taxi companies that are charging passengers at more than government-prescribed rates. The actions will include impounding the vehicle and cancellation of permits.

Shortly after Kejriwal’s tweet, the Delhi High Court has issued a notice to the Delhi Government seeking a response on steps taken by the government to stop Ola and Uber from charging arbitrary fares. The High Court will hear the matter on 25 April.

For now, the government has released a helpline number for the commuters in the city.

Uber & Ola Suspend Surcharge Temporarily

Following the Delhi government’s order to impound the cabs that are asking for charges above the prescribed government limit, Uber temporarily suspended the surge on its taxis. The cab service provider gave the information via a series of tweets.

Uber also said that they wish to provide a reliable mobility option during the odd-even road rationing scheme.

Meanwhile, Ola also decided to suspend the the “peak pricing” temporarily after the Delhi government’s strict stance. Ola tweeted about the step and wished for the success of Odd-Even plan.

Commuters Paid “Astronomical Rates” for Cabs

A bill from Ola customer with three times surcharge. (Photo: The Quint)

On the third day of the odd-even scheme, many office-goers complained that the cab providing services, Ola and Uber, were charging “astronomical rates” in the name of surge charges. Surge charge is a business practice in which companies increase the rates of cabs when the demand goes up.

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

The surge pricing varied from three times to five times the usual rates in the morning rush hour. The commuters had no option other than paying the extra amount or waiting for the prices to go down.

Meanwhile, on change.org, a website for activist groups, a petition was filed by Nitish Parmani to Head of Operations of Uber India to stop using surge pricing. The petition demands that the cab services end the “act of looting.” The petition has been signed by 55,594 supporters.

Experts believe that such acts from cab service providers will continue throughout the run of the odd-even plan.