Maha mulls cap on surge pric­ing by app-based cabs

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - Kailash Korde kailash.korde@hin­dus­tan­

MUM­BAI: Trans­port au­thor­i­ties in state are mulling a cap on surge pric­ing and ex­plor­ing var­i­ous op­tions to fix fares for mo­bile app-based cab ser­vices such as Ola and Uber. Surge pric­ing is the term used by the op­er­a­tors for de­mand- linked taxi fares. Cur­rently, the govern­ment has no con­trol over fares of app­based cabs, whose tar­iffs are dy­namic and driven by de­mand for their ve­hi­cles.

While there has been a ris­ing de­mand for app-based cabs ow­ing to the com­fort they pro­vide and low fares as com­pared to the blackand-yel­low taxis, com­muters end up pay­ing dur­ing peak hours as at times, the surge pric­ing can be as high as four times the base fare.

With con­sumer ac­tivists, trans­port ex­perts and taxi-auto unions de­mand­ing fare reg­ula- tions for app- based cabs, the state’s trans­port au­thor­i­ties are in the process of pre­par­ing a pro­posal that is likely to be sent to the Mum­bai Metropoli­tan Re­gion Trans­port Au­thor­ity (MMRTA) for its ap­proval.


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