New Taxi Scheme Calls For An End To Surge Pricing, Cap On Maximum Fare

न्यूज़ वर्ल्ड इंडिया | 0
| August 28 , 2017 , 08:37 IST

The Delhi government has announced its plans to ban surge pricing by app-based cab aggregators as a part of the government's City Taxi Scheme 2017 which would also cap the maximum fare that cabs can charge.

"We will not allow surge pricing in the city. We are going to put a cap on the maximum fare that cabs can charge from passengers," Transport minister Kailash Gahlot said.

While the app-based cab aggregators would be allowed to charge some extra amount above the base price per kilometre, the maximum price would be fixed and strictly enforced, said Gahlot.

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"The amount is likely to be around Rs 10 per kilometre above the base price but nothing has been finalised yet. Meetings are being held to iron out these issues," a government official said regarding the maximum fares that could be charged by cabs.

Although surge pricing had been prohibited by the Delhi government during the second phase of the odd-even traffic scheme last year, app-based cab aggregators continued to charge fares nearly twice or thrice the amount of usual fares.

Meanwhile, app-based aggregators defend surge pricing or 'dynamic pricing' saying that it incentivises drivers to bring out their vehicles on days of increased demand, which increases the availability of cabs.

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"Upfront fares are calculated using an algorithm that takes into consideration the expected time and distance of the trip, local traffic patterns, demand and supply at a given location. We're able to use past data to estimate the likely cost of the trip and can present that price to a rider before they request for a ride," an Uber spokesperson said.

"When dynamic pricing kicks in due to high demand, it incentivises driver partners to get their cars out on the roads to address the demand. In the process, we are able to not just predict demand and supply but also bring down the wait times for riders," the spokesperson added.