Maha mulls cap on surge pricing by app-based cabs
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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