Taxi and auto unions in New Delhi have gone on an indefinite strike against app-based taxi aggregators.
The government has clarified that it is against surge pricing charged by app-based taxi aggregators in the country, and has called for a cap on the maximum fares.
However, what might be a relief for taxi services firms like Ola and Uber, the government may allow surge pricing in the luxury taxi segment.
While responding to a question in the Parliament on Monday, Minister for Road Transport & Highways & Shipping, Nitin Gadkari, said, "The government shall not allow exploitation of commuters through surge pricing and feels that there should be a cap on maximum fares. The pricing in luxury taxi segment can be determined by market forces."
Ola offers luxury cars under the Ola Lux feature. Customers can book a Toyota Fortuner, Honda Accords, Mercedes-Benzs and BMWs.
So far, the Delhi and Karnataka government have barred Uber, Ola, and others, from charging surge prices at peak times, despite the companies' repeated pleas for permission, saying that it ensures taxi availability during rush hours, to meet demand.
Effective midnight, taxi and auto rickshaw unions went on an indefinite strike demanding that the Delhi government revoke the permits given to the app-based taxi aggregators.
Gadkari's statement also comes at time when the Delhi High court on Monday, heard a plea filed by the Radio Taxi Association, which has accused Ola, Uber and others of charging more than the fares decided by the Delhi government.
At the hearing, the Delhi High Court ordered that taxi aggregators cannot charge more than the standard fare decided by the Delhi government. Ola assured the government that it will not indulge in surge pricing in New New Delhi.
Apart from this, to resolve issues pertaining to taxi - auto wallah unions, taxi aggregators, and others, the government has constituted a Committee under the chairmanship of Secretary, Ministry of Road Transport & Highways, Gadkari told the Parliament.
The Committee will have on board the Joint Secretary (Transport), MoRTH, Transport Commissioner of Govt of NCT of Delhi, Madhya Pradesh, maharashtra and Telangana.
It will also be responsible for formulating a "credible and acceptable plan of action and frame draft scheme under the existing provisions of the Motor Vehicles Act, 1988," Gadkari told the Parliament.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Representational Image")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}