Ready for cap on prices: Uber relents, says no to surge in Delhi

After resuming the surge-pricing despite the Delhi government’s warning, cab aggregator Uber has decided to do away with it .

After resuming the surge-pricing despite the Delhi government’s warning, cab aggregator Uber has decided to do away with it .

Uber has now said that the fare per kilometre charged on its platform within Delhi will not exceed the government rates.

Chief minister Arv ind Kejriwal had warned taxi aggregators against surge pricing. Uber discontinued the practice of levying extra charges during peak hours till the odd-even car restriction scheme was on till April 30.

It resumed surge pricing soon after.

Uber has now said that the fare per kilometre charged on its platform within Delhi will not exceed the government rates.

“With prejudice to all our rights and contentions, we would like to humbly submit that the per kilometre fare charged on the Uber platform within Delhi will not exceed the government prescribed fare applicable in Delhi. We remain committed towards providing a reliable and affordable transportation service to the people of Delhi,” Uber’s Gagan Bhatia said in a letter to Delhi transport commissioner.

According to prescribed rates, fares for Economy Radio taxi are Rs 12.50 per km and Rs 14 per km and Rs 16 per km for non-AC and AC Black & Yellow top taxis. For radio taxis, which are mostly sedan, the fare is fixed as Rs 23 per km. Additional night charges (25% of the fare) are applicable between 11pm and 5am.

“This is a result of our crackdown on app-based taxis. We are now working on a policy for cab aggregators. Once they take the licence, all companies will have to follow guidelines,” said a transport department official.