APP CAB PRICING: Delhi mulls alltime ban

Surge pricing, introduced for the ongoing phase of the "odd-even" scheme, is "daylight robbery" and a ban on it will be made permanent, the Delhi government has announced. If the Arvind Kejriwal government keeps its resolve, all app-based taxi aggregators in the Capital will have to charge fares fixed under a new policy.

Earlier, Kejriwal termed surge pricing as "daylight robbery" and said overcharging and blackmailing won't be allowed in Delhi. Under surge pricing, appbased taxi service providers like Ola and Uber hike the rates when demand outstrips supply. "Yes. We will do it," Kejriwal tweeted replying to a suggestion on why government was not continuing with the ban on surge pricing permanently.

In its reaction, leading taxi aggregator Uber criticised the move, saying without surge pricing, there would be no cars available when people need them. "Higher prices are required in order to get cars on the road and keep them on the road during the busiest times. This maximises the number of trips and minimises the number of people stranded. The drivers have other options as well. In short, without surge pricing, there would be no car available when people need it," the Uber said in a statement.

The US-based company also said 92 per cent of the trips in Delhi happened on regular fares, even during the first phase of odd-even scheme. Kejriwal clarified that the Delhi government was not against taxi aggregators, who provide important service to people, but asserted they will have to follow the law.

Separately, Transport Minister Gopal Rai said a policy will be introduced soon under which app-based taxi companies will have to charge fares fixed by the transport department.