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  1. Surge pricing: Ola, Uber and other taxi operators cannot charge more than stipulated rates after August 22, says Delhi HC

Surge pricing: Ola, Uber and other taxi operators cannot charge more than stipulated rates after August 22, says Delhi HC

Delhi High Court on Thursday said that Ola, Uber and other taxi operators cannot charge more than stipulated rates after August 22.

By: | Updated: August 11, 2016 4:53 PM
On Wednesday, the court asked the Arvind Kejriwal-led AAP government to make a policy for app-based cab services like Ola and Uber. On Wednesday, the court asked the Arvind Kejriwal-led AAP government to make a policy for app-based cab services like Ola and Uber.

Delhi High Court on Thursday said that Ola, Uber and other taxi operators cannot charge more than stipulated rates after August 22.  The court was hearing a clutch of petition filed by an association of radio taxi operators and Ola. The radio taxi operators association alleged that Uber and Ola are overcharging customers. Ola, on the other hand, accused Uber of not complying with court orders. Recently, the Delhi High Court also stressed upon the need for “good” and “model” law for regulating app-based cab services, like Ola and Uber and said it will be helpful to the people and would bring in more clarity.

The Delhi government prescribed rates for Economy Radio Taxi is Rs 12.50 per kilometre, Rs 14 per km for for non-AC black and yellow top taxi and Rs 16 per km for AC black and yellow top taxi. Night charges between 11 pm and 5 am can be 25 per cent of the fare. The state government came head-to-head with the cab aggregators during the second phase of the odd even scheme in Delhi. They accused the cab services of increasing cab fares, causing inconvenience to customers.

On Wednesday, the court asked the Arvind Kejriwal-led AAP government to make a policy for app-based cab services like Ola and Uber. The policy will then be sent to Lieutenant Najeeb Jung for approval. Under the policy, all app-based cabs will have to ply by the meter and cannot charge above the prescribed fare approved by the Delhi government. “There will be no surcharge and fare beyond government fixed rates,” ANI reported.

Delhi Transport Minister Satyendar Jain said the policy will soon be put for public’s suggestions for 15-30 days and then sent to the Lt Governor for his approval. As per the new policy, cab aggregators will not be allowed surge pricing and they will have to charge fares only through meters. The companies will also have to install Global Positioning System (GPS) in taxis being operated under their banner in view of safety of passengers especially women.

During the second phase of odd-even scheme, Chief Minister Arvind Kejriwal had also slammed the app-based cab aggregators for surge pricing, terming it as “daylight robbery”. He had also asserted “overcharging and blackmailing won’t be allowed” in the national capital. After the Chief Minister’s warning against surge pricing, Transport Department had launched a drive against such cab services charging exorbitant fares from the passengers.

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