This Is What Surge Pricing Really Is And Here is Why Cab Operators Think Its A Good Thing

Admin 21-Apr-2016 14:36:29 Inothernews

This Is What Surge Pricing Really Is And Here is Why Cab Operators Think Its A Good Thing


Delhi government had decided to reign havoc on app-based taxi services like Uber and Ola for over pricing during peak hours during the ongoing second phase of the odd-even traffic restrictions. According to reports, cabs were charging up to five times higher the original amount from passengers. Following numerous complainants from users, Delhi government warned the likes of Uber and Ola against overpricing, forcing them to withdraw the pricing technique for now. Later, the government said it won't allow surge pricing even after April 30, when the odd-even ends.



Will the ban affect availability of cabs?

In the cab-aggregation model, players on the platform do not own the taxis, nor do they employ the drivers. So they can't determine the number of cars plying on a certain day. The suspension of surge pricing in Delhi seems to have hit availability of cabs on Tuesday.

Commuters complained of not being able to find cabs on the Uber and Ola apps. While some said they got a "no cabs available" message on the app through the day, others had to wait for a long time, only to find drivers cancelling trips without any explanation. Both Ola and Uber pushed for the carpooling option.

title=

Related Post