1. Home
  2. Business
  3. After Kejriwal's warning, Uber and Ola

After Kejriwal's warning, Uber and Ola temporarily suspend surge pricing with immediate effect

India TV Business Desk 18 Apr 2016, 19:14:51 IST
India TV Business Desk

New Delhi: Following a firm stand by the Delhi High Court and a warning of strict action by Chief Minister Arvind Kejriwal for over-charging during the odd-even scheme, online cab service providers Uber and Ola today suspended their surge pricing with immediate effect.

"Given the threat to the livelihood of our partners, at the expense of reliability, we are temporarily suspending surge with immediate effect," Uber tweeted.

Uber did not specify if the surge pricing would resume after the second phase of the odd-even traffic scheme ends on April 30.

It also pledged to work with the Delhi government to provide reliable mobility solutions to people in the city, "especially at a time when the citizens need us the most".

Under fire for its fare hike, Ola too announced suspension of its surge pricing.

It issued a statement to confirm the move that read, “To make Govt’s Odd Even initiative a success, Ola has temporarily pulled out Peak Pricing in Delhi NCR. We have also rolled out an on-ground campaign where volunteers are spreading the message of ride-sharing and car-pooling in support of the scheme. Ola remains committed to a clean and green Delhi NCR while it enables sustainable transport solutions for the citizens in the region. Ola’s shared mobility solutions including Ola Share and Ola Shuttle have seen tremendous response and adoption from users in the region. A lot of demand is being witnessed in business districts, around metro stations and other popular areas in the city.”

Earlier today, the Delhi High Court issued a notice to AAP government regarding over-charging of fares by the app-based private taxis.

Delhi Chief Minister Arvind Kejriwal also warned of "strict action" against app-based taxis, including cancellation of permits and impounding of vehicles.

"Strict action, including permit cancellation and impounding of vehicles, will be taken against app-based taxis which charge fares more than government-prescribed rates (sic)," Kejriwal said in a tweet today.

The government has been receiving some complaints against the app-based taxi service providers Ola and Uber of hiking the fares exorbitantly during rush hours.

Surge pricing is a technique used by the cab aggregators to hike the fares owing to higher demand. 

The demand for taxis has shot up on account of the odd-even traffic scheme that started on April 15 and will run till April 30. 

Under the scheme, aimed at battling pollution, diesel and petrol driven private vehicles with odd registration numbers can ply only on odd dates and those with even registration numbers on even dates.