Uber, Ola to stop surge pricing from August 22

After months of negotiations and complaints, the Delhi High Court has finally clamped down on surge pricing by app-based cab service providers. The deadline is set on August 22.

Such service providers like Ola and Uber cannot charge passengers more than the government-fixed from this date onwards.

The deadline was fixed after Uber requested Justice Manmohan that it would need 10 days to make changes to its software to ensure passengers are not charged more than the rates stipulated by the Delhi government in June 2013.

Ola, on the other hand, said that it has already stopped charging passengers more than the notified rates.

According to the prescribed rates, fare for Economy Radio Taxi is Rs 12.50 per km, while it is Rs 14 per km for non-AC black and yellow top taxi and Rs 16 per km for AC black and yellow top taxi.

The notified fare of Radio Taxi cabs is Rs 23 per km. Additional night charge (25 per cent of the fare) is applicable between 11PM and 5 AM.

The court observed while addressing the issue of surge pricing that while taxi aggregators like Ola and Uber reduce the pressure on public transport, “a uniform policy must be devised” for regulating them.

The court has also directed a special committee, set up by the Centre to examine all issues related to existing permits given to taxis and cab aggregators, to also include one senior official each from the Ministry of IT, Central Pollution Control Board and Delhi Traffic Police.