New taxi scheme in Delhi:No more Surge Pricing by Ola/Uber!

Surge Pricing by app-based cab aggregators like Ola/Uber etc. will soon be banned by Delhi Government under Delhi Government’s New City Taxi Scheme 2017 as per the statement made by the transport minister Shri Kailash Gahlot on 27 August 2017. Delhi Govt. is planning to ban surge pricing by putting a cap on the maximum fare that cabs can charge from passengers, The app-based cab aggregators may continue to charge nominal additional amount above the base price per kilometre but that amount would be reasonable, fixed and strictly enforced.

The provision of capping on the maximum fare to be charged by cab aggregators like Ola/Uber etc. will be provided under Delhi Government’s City Taxi Scheme 2017, which is under finalization. The operations of app-based cab aggregators will be regulated once capping is done on the additional amounts charged by cab aggregators in the name of surge pricing.

The maximum amount/capping for surge pricing is expected to be around Rs 10 per kilometre above the he base price. Earlier, surge pricing was banned by the Delhi government last year in 2016 during the second phase of odd-even road rationing scheme. Under Surge Pricing, app-based cab aggregators are currently charging even two to three times the usual fare.

Surge pricing is used by cab aggregators during rains, traffic, festivals etc. If one has to listen to App-based cab aggregators, they argue that surge pricing motivate drivers to bring out their vehicles on the road on days of spiked demand, thereby increasing the availability of cabs.

 

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