Delhi govt impounds 50 cabs for surge pricing; total 75 seized so far

  • HT Correspondent, Hindustan Times, New Delhi
  • Updated: Apr 20, 2016 15:41 IST
Delhi CM Kejriwal has said the government will not allow the app-based taxi aggregators to surge price. Nearly 75 cabs have been impounded so far for riding passengers on surge-pricing. (HT file photo)

The Delhi government has impounded 50 vehicles run by app-based taxi aggregators for charging fares more than the prescribed rates during the odd-even car rationing period, officials said on Wednesday.

With this, the total number of vehicles which have been seized has gone up to 75.

Earlier in the day, chief minister Arvind Kejriwal had said that surge pricing by taxi aggregators is day light robbery and no responsible government can allow that it. Surge pricing is a business practice in which companies charge higher rates than normal to encourage more drivers to offer rides when demand for taxis outstrips supply.

Read | Surge pricing is daylight robbery, won’t allow it: Kejriwal

In a series of tweets, Kejriwal said the government will not allow them to surge price, without naming any company.

“Some taxis saying they will not provide cab if they are not allowed to loot. This is open blackmailing n govt will not let that happen (sic),” the CM had posted.

“We are not against taxi aggregators. We fully support them. They provide imp service to people. But they will have to follow law. Overcharging, diesel cars, drivers without license/badges n blackmailing by taxi aggregators won’t be allwed (sic),” he tweeted.

The government had impounded 25 Ola and Uber vehicles on Tuesday - the fifth day of its odd-even experiment - for surge pricing and other offences. The crackdown on Tuesday afternoon led to a paucity of taxis across the city. Many commuters complained they could not get any cabs.

On Monday, Ola and Uber had suspended surge pricing after Kejriwal ordered strict action, including permit cancellation and impounding, against overcharging by taxis during the odd-even car rationing period.

Ola said they were suspending it to support the government’s odd-even measure.

Read | Odd-even should be the last resort: What Delhi can learn from Beijing

“We have temporarily suspended the surge-in-price option but this is not for the entire two weeks of odd-even. We will be closely working with the government to see how to serve customers better,” an Uber spokesperson said.

Uber had informed its customers on Tuesday that the ‘temporary suspension’ of surge pricing may result in fewer cabs on Delhi roads.

Also read | With surge pricing gone, wait for cabs goes up in New Delhi

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