Uber has suspended surge pricing completely in New Delhi after strict warnings issued by Delhi CM. Also, in a letter to the Transport Minister, it has agreed to not exceed the fare from what is decided by the government.
For Delhi commuters, the government has reiterated the taxi fares as INR 12.50/km for Economy Radio Taxis; INR 14 per km and INR 16 per km for non-AC & AC black-and-yellow cabs. For radio taxis, which are mostly sedan, the fare is fixed as INR 23 per km. Additional night charges (25% of the fare) are applicable between 11pm and 5am.
The surge pricing issue was highlighted during the implementation of odd-even scheme in the capital city. Both Ola and Uber were given warnings to stop surge pricing.
Strict action, incl permit cancellation n impounding vehicle, to be taken against taxis which charge rates more than govt prescribed rates
— Arvind Kejriwal (@ArvindKejriwal) April 18, 2016
The move received mixed reactions from the media and the people. While on the customer front, the announcement was appreciated, on the other side market analysts depicted it as a step leading to ‘startups discouragement’ and ‘anti-free’ market.
Kejriwal’s Surge Pricing Ban Is Odd, Even If Delhi Wants It! https://t.co/gmYM29oLlu
— Bodahub (@bodahub) May 17, 2016