While the Delhi Government indicated on Wednesday that “surge pricing” may get banned even after the odd-even scheme gets over, leading app based taxi operator Uber criticised the move saying without surge pricing, no cars would be available when people need them.
“Higher prices are required in order to get cars on the road and keep them on the road during the busiest times. This maximises the number of trips and minimises the number of people stranded. The drivers have other options as well. In short, without surge pricing, there would be no car available when people need it,” Uber said in a statement.
The US-based company said 92 per cent of the trips in Delhi happened on regular fares, even during the first phase of odd-even scheme. In its statement, Uber said the consumers always have a choice to take a surged trip.
“Not surging is saying citizens shouldn’t have the option. Not surging is saying we should be just like a taxi and be unreliable when people need us most. These are outcomes that take choices away from the consumer and make it harder to get around cities - these are outcomes that we put a lot of hard work in to avoid so that at least you have the choice if you want one,” the company said.
“However, given the threat of the Delhi Government to cancel permits and impound vehicles of our driver partners, we are temporarily suspending surge in Delhi with immediate effect,” it further added.
Surge pricing is a technique used by Uber and Ola to raise fares to provide drivers the incentive of keeping their cab running while also making it available for the user irrespective of the demand.