Terming the surge pricing by app-based cab operators like Ola and Uber as “daylight robbery”, Chief Minister Arvind Kejriwal on Wednesday said that the Delhi Government will not allow overcharging and blackmailing by cab operators in the city and the ban on ‘hiked’ fare will continue even after the odd-even scheme. The Government also said that it has decided to introduce a policy under which the Transport Department will prescribe the fares to be charged by the cab companies.
Kejriwal said in a series of tweets, “Surge pricing is daylight robbery. No responsible Government can allow that. Some taxis (are) saying they will not provide cabs if they are not allowed to loot. This is open blackmailing and the Government will not let that happen. Overcharging, diesel cars, drivers without licence/badges and blackmailing by taxi aggregators won’t be allowed.”
In its reaction, Uber criticised the move, saying without surge pricing, there would be no cars available when people need them. 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.
“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,” the Uber said in a statement.
However, reacting to Uber’s statement that the Delhi Government’s action against cabs for surge pricing is responsible for shortage of cabs, Kejriwal clarified that his Government was not opposed to app-based cab operators who provide important service to people, but added that “they will have to follow the law”.
He also alleged that one of the media houses supporting “surge pricing” had Rs150 crore investment in one of these taxi aggregators. However, he did not name any media house.
Meanwhile, Transport Minister Gopal Rai said that the Government has started working on a policy exclusively for the app-based taxis operating in the national capital, which will soon be made public.
“We will fix fares for them as we have done in the case of radio, economy cabs and kaali-peeli taxis. All app-based taxi services will be regulated through this policy,” Rai said, adding that once the new rules are laid down, app-based cab companies will be bound to follow the same.
The Government’s move comes after it received several complaints of surge pricing by Ola, Uber and other companies since the second phase of odd-even was implemented.
Meanwhile, the Delhi Government has impounded another 50 cabs for overcharging till Wednesday afternoon. According to officials, 35 of those 50 cabs were registered outside Delhi.
Earlier, 18 cabs of Ola and Uber were impounded late on Monday for charging fares more than the prescribed rates during the odd-even car rationing period.