Uber and Ola had stopped surge pricing after Arvind Kejriwal warned against cabs trying to take advantage of the "odd-even" scheme.
Highlights
- Surge or dynamic pricing by taxi apps originally banned till April 30
- Government says ban will be permanent, like in Karnataka
- Taxis cannot hike fares when demand is high, says government
Chief Minister Arvind Kejriwal, accused by critics of unfairly curtailing taxi apps Uber and Ola, has turned it up several notches. On Twitter today, he said a
ban on surge pricing, introduced for the fortnight-long "
odd-even" scheme, will be made permanent, a decision his government later announced.
The odd-even scheme, which ends on April 30 and is aimed at reducing the egregious air pollution in the capital, restricts cars to alternate days according to whether they carry odd or even-numbered licence plates.
The scheme began last week but its first test was on Monday, when schools and offices re-opened after a four-day-long weekend. Commuters complained angrily on social media about surge pricing - fares for taxis provided by Ola and Uber shooting up to nearly five times the standard rate. Mr Kejriwal warned that unless taxi aggregator apps ended the practice immediately, cars would be impounded. 50 taxis have been seized by the government so far for violating the ban.
Uber, in a series of tweets, has tried to explain that it does not own cars or employ drivers, but aggregates them, and that
surge pricing helps ensure more drivers are available when demand peaks. "Almost all of the fare, surge or not, goes to the driver partners," the company tweeted, adding that on Monday, reports of fleecing customers were incorrect.
Mr Kejriwal said surge pricing equals "
daylight robbery" and his government does not buy Uber's arguments.
Recently, Karnataka banned surge pricing and said private operators cannot charge a fare higher than what is set by the government.