The move came after a Delhi High Court order sought a status report on its action against taxi operators flouting fare norms in the state.
Radio Taxi apps Uber and Ola on Monday stopped surge pricing after Chief Minister Arvind Kejriwal warned of strict action against them for trying to take advantage of the second leg of the odd-even road rationing scheme by flouting fare rules.
The move comes after the Delhi High Court issued a notice to the Delhi Government on a petition, directing it to file a status report on its action against taxi operators who flouted fare rules.
The court said that the government cannot wash off its hands off this issue when people are made to suffer. The court also observed that if Ola and Uber are advertising low fares and then charging higher rates, then the Delhi government must take action against them.
While both Uber and Ola stopped surge pricing temporarily, they both responded to the Court order.
Uber said in a statement that surge pricing -- or higher fares -- when demand rises, is standard. "Airlines and hotels are more expensive during busy times. Uber is as well," it stated.
However, "Given the threat of the Delhi government to cancel permits and impound vehicles of our driver partners, we are temporarily suspending surge in Delhi with immediate effect," the app-based taxi service said.
After discontinuing its surge pricing practice, Ola said, "We've temporarily pulled out Peak Pricing in Delhi in support of the government's odd-even initiative" which ends on April 30.
The second instalment of the odd even road rationing scheme began last week.
A strike threatened by an auto and taxi union affiliated to Rashtriya Swayamsewak Sangh, was cancelled on Monday night following government assurances to look into their complaints of the radio app-based cab services.
Uber, elaborating its stand on surge pricing, took to Twitter saying that in the first three days of the odd-even scheme, fare increase charged by Uber was under 2x. The San Francisco-based company further said that even with the surge pricing, an Uber was more affordable than radio taxi or government prescribed rates.
Uber said that in the just-started second leg of the odd-even scheme in New Delhi, cabs taken on surge pricing accounted for less than 8%.
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