Maharashtra Too may Curb Surge Pricing by Uber, Ola
State transport dept also recommends cap on number of vehicles
Mumbai: Taxi apps Uber and Ola may face roadblocks on surge pricing and general operations in Maharashtra after the state transport department recommended a cap on surge pricing and a ceiling of 4,000 vehicles per operator. The state transport department, which is in the process of drafting a new state transport legislation, made the recommendation some months back and the Maharashtra government will take a call on the issue soon.
Ceiling may Hurt Cos Badly
transport dept has recommended a ceiling of vehicles per cab aggregator
if accepted, would mean Uber and Ola would be forced to let go of many drivers
are estimated to have drivers each in the state
4,000 This proposal,
Transport Commissioner Shyam Wardhane confirmed the nature of the recommendation to ET. “We have asked the state to put a cap on surge pricing. However the final call will have to be taken by the cabinet,” said Wardhane.
Maharashtra Principal Secretary (Home), Vijay Satbir Singh told ET a decision will be taken after consulting all stakeholders. “We have got the recommendations for a cap on surge pricing the issue is under our consideration and we will soon take a decision on it, ” said Singh. A cap on surge pricing means that Uber and Ola cannot charge more than prescribed rate during peak hours. The ceiling on 4,000 vehicles is a far more serious issue as both aggregators will be forced to let go of many drivers if the recommendations are adopted. Industry officials believe that Uber and Ola could alone be having about10,000 operators each in Maharashtra.