Uber suspends surge pricing in Delhi-NCR region

Taxi aggregator Uber has temporarily suspended surge pricing in Delhi-NCR region, following wide criticism for the manifold increase in fares.On the fourth day of odd-even scheme run by Delhi government, passengers faced difficulties in booking cabs as the platform showed fares to be as high as 5 times than the normal fare.

The US-based firm said it “regularly does surge pricing when demand outstrips supply”. “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. We hope to work with the government to keep Delhi moving, especially during this time when the citizens need us the most,” Uber India General Manager North Gagan Bhatia said.

The company said higher prices are required in order to get cars on the road and keep them on the road during the busiest times. 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.

Earlier in the day, Delhi Chief Minister Arvind Kejriwal had warned of “strict action” against app-based taxis including cancellation of permits and impounding of vehicles, for charging fares more than the rates prescribed by the government.

“Strict action, including permit cancellation and impounding of vehicles, will be taken against app-based taxis which charge fares more than government-prescribed rates (sic),” Mr Kejriwal had tweeted.

The government had received complaints of surge pricing after the odd-even scheme was kicked off on April 15. The rates were allegedly also hiked today, the first full working day of the fortnight-long odd-even scheme when offices, schools and other institutions reopened after an extended weekend.