Uber brings back surge pricing

Kejriwal warns of strong action

As ban on diesel-run cabs came into effect, taxi aggregator Uber  on Sunday brought back surge pricing here, prompting Chief Minister Arvind Kejriwal to warn of “strong action”.

Uber had introduced the provision during the odd-even vehicle plying scheme, which was objected to by commuters. Kejriwal had asserted that such demand-linked hikes would be banned permanently. A day after the second phase of odd-even ended, commuters across the city who availed the services of the app-based cab firm on Sunday found that surge pricing, where fares are raised when demand is higher than the available cabs, was back. An Uber spokesperson confirmed this saying the suspension of surge pricing was only “temporary”.

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“Some taxis have started charging surge. Surge not allowed under law. They are warned that strong action will be taken against them,” Kejriwal tweeted

A senior Delhi government official said action will be taken against these companies, based on complaints. “We will impound their cabs,” the official said.

While an immediate confirmation could also be obtained from Ola, another app-based service, its app displayed a message saying peak time charges may be applicable during high demand hours and will be conveyed during the booking, which “enables us to make more cabs available to you”. Ola displayed the disclaimer during the odd-even period as well, although it did not invoke peak-pricing till Saturday.

The Delhi government had cracked its whip on these companies in the first week of the second phase of odd-even, after Kejriwal termed the concept “daylight robbery”. The authorities had also impounded cabs for overpricing.