Ola, Uber in Trouble: Delhi, Centre to Remove Surge Pricing

The new directives will see an end to surge pricing. All taxis will be required to install physical fare meters.

The government’s proposals will first be put for public’s suggestions and then sent to L-G Najeeb Jung to be ratified before it can come into effect. (Photo: Reuters)

The Delhi High Court on Thursday directed app based taxi services Ola, Uber to adhere to government directives and not charge its customers fares higher than stipulated by the Delhi government.

It has also directed the Centre appointed committee that is looking into the matter to review Delhi government’s draft policy and submit a final report on it in 3 months.

The Delhi High Court on Thursday directed app-based taxi aggregators, including Ola and Uber, not to charge more than government-fixed rates from its passengers from 22 August.

Earlier, in a move aimed at regulating app-based taxi aggregators, the Delhi government revealed plans of fixing a cap on pricing for these taxi services.

These measures – which the Delhi government plans to follow strictly –are part of preparation for a policy that came after directions from the Delhi High Court.

To this effect, the AAP government drafted a policy under which these cab companies will be bound to charge fares expected to be close to the policies outlined in the amended motor vehicles law the Union cabinet approved a week ago.

According to the government’s notification, the fares of economy taxis is Rs 12.5 per km, for non-AC taxis Rs 14 per km and for AC black and yellow-top taxis Rs 16 per km. Additional night charge (25 per cent of the fare) is applicable between 11 pm and 5 am.

However, the proposal will first be put to the public for suggestions and then sent to L-G Najeeb Jung to be ratified before it can come into effect.

The government will fix the rates and cabs will charge within the limit. If there’s a law for autos and taxis, Ola and Uber cannot be above it.

Satyendar Jain, Transport Minister, Delhi

Fare Meters to be Installed, No More Surge Pricing

Apart from putting an end to surge pricing, all taxis will also have to install fare meters instead of internet-based meters, as a government study showed that Ola and Uber fares were sometimes inflated due to poor mobile networks, as cell phones would connect to a tower further from the pick-up or drop point.

We have said meters should be there. Tariff will be what the government fixes, though it will be dynamic. They (aggregators) won’t be able to impose surge pricing.

Satyendar Jain, Transport Minister, Delhi

(With PTI and IANS inputs.)