Uber and Ola suspended surge pricing on Monday evening after the Delhi government warned of stern action against the taxi companies.
App-based taxi services like Uber and Ola suspended their surge price practice temporarily on Monday after the Arvind Kejriwal-led government warned of strict action against the cab companies for flouting fare norms.
However, Uber has said that despite surge pricing, a move it defends as a practice to ensure prompt service, its rides were more affordable than radio taxis and even government prescribed rates.
Under the surge price practice, cab companies like Uber and Ola charge higher fares during peak hours to "get you a ride within minutes, at the push of a button, even on the busiest days," Uber said on Twitter. "Surge pricing makes this possible, almost always," the San Francisco-based company said, describing its goal for customers.
Reacting to the Delhi government's clampdown on the surge pricing practice during the ongoing second leg of the odd-even scheme in New Delhi, Uber took to Twitter, describing its stand in a series of tweets, even as the company went on to suspend the practice later in the evening.
A Delhi court order asked the Delhi government to file a report on the measures it had taken to ensure fare rules were not flouted during the odd-even scheme.
Uber said that in the first three days of the odd-even scheme, only 8% of the cabs were booked on surge pricing.
The Delhi court sought impounding Uber and Ola's vehicles if they were found charging a higher fare than otherwise advertised. Uber said that the nearly all of the fare, surge or not, goes to its driver partners only.
The company also said that its technology uses assets in a way that would bring fares down overtime.
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