Cab providers pulled out peak pricing after Kejriwal warning

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Delhi Chief Minister Arvind Kejriwal threatened “strict action” against over-charging cabs yesterday following which Online cab service providers Uber and Ola suspended their surge pricing.

“Given the threat to the livelihood of our partners, at the expense of reliability, we are temporarily suspending surge with immediate effect,” Uber tweeted.

However, Uber did not specify whether the surge pricing would resume after the second phase of the odd-even traffic scheme ends on April 30.

It also vowed to work with the Delhi government to provide reliable mobility solutions to people in the city, “especially at a time when the citizens need us the most”. Ola cab services also announced rollback of “peak pricing” in Delhi NCR.

“To make the govenment’s odd-even initiative a success, Ola has temporarily pulled out Peak Pricing in Delhi NCR,” its business head (north) Deep Singh said in a statement.

Earlier after receiving complaints of price hiking amidst the odd even scheme the Delhi chief Minister Kejriwal warned of strict action against online cab aggregators, specially Ola and Uber, over arbitrary surge pricing, a technique used by the cab aggregators to hike the fares owing to higher demand.

Read More at: Strick action over hiked taxi charges: Kejriwal

The Delhi government on Monday directed the impounding of taxis charging high fare from the public. Delhi Transport Minister Gopal Rai had said that apart from impounding taxis, they would also seize the licences of the taxi drivers and cancel their permit.

He said the order was applicable to all kinds of cab services including online aggregators as well as private taxis, radio taxis and black-and-yellow taxis.

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

According to the Traffic control scheme which aimed to battle pollution, diesel and petrol driven private vehicles with odd registration numbers can ply only on odd dates and those with even registration numbers on even dates.

Wefornews Bureau

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