Delhi govt wants to make sure Uber, Ola cabs come with fixed price band

A day after Arvind Kejriwal-led Delhi government warned cab operators such as Uber and Ola against surge pricing during the Odd-Even rule Part II, the state government is now working to create a framework to plug in surge pricing permanently.

A policy is being prepared in which a price band would be set for the cab operators.

Ola and Uber have suspended the surge pricing till April 30, last day of Odd-Even but it is yet to be seen how the new policy will affect the taxi aggregators.

"The central government has told all states to prepare a policy. Two states have already made it. We are also making it. To ensure better service for citizens, the minimum and the maximum will be etched out. Rest, it is the operator's decision," a senior official told ET. "

However, Ola and Uber said they are not transport companies and just technology providers.

READ ALSO: Odd-even scheme: Facing criticism, Ola Shuttle announces free rides in Delhi-NCR

While Uber and Ola both confirmed that surge pricing as a core business model won't change for India, both are encouraging riders to choose their carpool and ride share services. That increases one's possibility of hailing a cab, and taxi aggregators still get your cash. Something's better than nothing, after all. However, between the clash of the Titans, two people get stuck, the rider and the driver.

The companies aren't very happy for obvious reasons. On one hand is the obvious hit to the business, on the other hand local governments playing around with their core business model leaves them struggling to supply enough cars in high-demand metros.

READ ALSO: Exclusive: Uber says surge pricing as a core model won’t change for India

Meanwhile, the policy will take at least 20 more days to finalise.

Kejriwal said that the surge pricing is daylight robbery and no responsible government can allow that.