Twitter
Advertisement

No surge-pricing after Aug 22, HC tells Ola, Uber

The deadline was fixed for August 22 after Uber told Justice Manmohan that it needs at least a fortnight to make relevant changes in its software.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Clamping down on surge-pricing, the High Court here on Thursday directed the radio/app-based cab operators to stop charging fares beyond what is stipulated by the government after August 22. Simply put, Ola and Uber cannot charge its customers based on surge-pricing.

The deadline was fixed for August 22 after Uber told Justice Manmohan that it needs at least a fortnight to make relevant changes in its software.

The court further directed a Centre-appointed committee to review the Aam Aadmi Party-led state government's draft policy and submit report within three months.

The decision came on the heels of a bunch of petitions filed by associations of radio taxi operators. A separate petition where Ola had accused Uber of not complying with the court orders was also heard.

On Wednesday, the court had said that there was a need for a "good" and "model" law to regulate app-based cab services like Ola and Uber. Justice Manmohan said he would set up a panel to hear all the stakeholders and then come out with a model law.

This panel, which will also examine all issues related to existing permits, must include one senior official each from the Ministry of Information Technology (MIT), Central Pollution Control Board (CPCB) and Delhi Traffic Police apart from getting the inputs of a transport expert from Niti Aayog.

According to the draft policy, all cabs will ply by meter, barred from charge over and above the upper limit prescribed, must inform the customer of the tariff and cannot charge surge price beyond the upper ceiling. As per a 2013 state government notification, the prescribed rates for economy radio taxi is Rs12.50/km, Rs14/km for non-AC black and yellow top taxi and Rs16/km for AC taxi. Additional night charges – between 11 pm and 5 am – can be 25% of the fare.

The issue with surge-pricing came to the forefront when during the second phase of the state government's odd-even scheme, the cab aggregators increased cab fares, causing inconvenience to the consumers.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement