50 more taxis seized in Delhi, 'surge pricing' may go

Image
IANS New Delhi
Last Updated : Apr 20 2016 | 3:42 PM IST

Authorities in Delhi have impounded 50 more taxis for over-charging customers as Chief Minister Arvind Kejriwal hinted on Wednesday that "surge pricing" by cabs may face the axe forever.

"We have impounded 50 more taxis following complaints from customers. All the taxis belong to various app based cab aggregators," a Delhi government official told IANS.

He said 35 of the 50 taxis were registered outside Delhi.

The Delhi government had on Monday seized 18 taxis belonging to Ola and Uber for over-charging commuters, taking advantage of a leap in demand for taxis during the ongoing odd-even traffic scheme.

Kejriwal has threatened "strict action" over "surge pricing", a technique used by the cab aggregators to hike fares in the event of high demand.

After app-based cab operator Uber blamed the Delhi government for taxi shortage, Kejriwal clarified that his government was not opposed to online aggregators but insisted they obey the law.

"We are not against taxi aggregators. We fully support them. They provide important service to people. But they will have to follow (the) law.

"Overcharging, diesel cars, drivers without license/badges and blackmailing by taxi aggregators won't be allowed," the chief minister tweeted.

He alleged that one of the media houses supporting "surge pricing" had Rs.150 crore investment in one of these taxi aggregators. He did not name any media house.

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

Restrictions on diesel and petrol driven cars during the ongoing scheme has forced thousands of motorists to go for taxis to commute.

Kejriwal has termed the surge pricing as "daylight robbery" and blamed the companies for "openly blackmailing" the Delhi government.

"Surge pricing is daylight robbery. No responsible government can allow that.

"Some taxis saying they will not provide cab if they are not allowed to loot. This is open blackmailing (and) government will not let that happen," he said.

After a Poonam Pandey wrote to Kejriwal on his Twitter account that the suspension of surge pricing should continue even after the odd-even system ends on April 30, Kejriwal replied: "Yes. We will do it."

After Kejriwal's statement on Monday, Uber and Ola suspended surge pricing.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 20 2016 | 3:24 PM IST

Next Story