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Following the crackdown on diesel taxis in Delhi-NCR, <a href="http://www.businessinsider.in/searchresult.cms?query=ola">Ola</a> is increasing its fleet of <a href="http://www.businessinsider.in/searchresult.cms?query=CNG+cars">CNG-fitted cabs</a>. 
 <keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword>, which already has 20,000 CNG cars, will be adding over 5,000 cabs in coming weeks and infusing Rs 200 crore for the same. 
 
"Ola is planning to expand its <a href="http://www.businessinsider.in/searchresult.cms?query=fleet+of+cab">fleet</a> of CNG cabs in Delhi by adding more than 5,000 cabs in the next one week. We have brought together car manufacturers, banks and financiers and valuation platforms to enable heavy discounts, loan offers and on spot valuation and exchange," said Ola COO Pranay Jivrajka. 
 
Ola is also giving lucrative offers to <a href="http://www.businessinsider.in/searchresult.cms?query=drivers">drivers</a> of saving up to Rs 1.5 lakh on exchanging their old diesel vehicles for a new CNG one in next six months. 
 
"This is the largest amongst a series of programs rolled out by Ola to encourage CNG adoption in Delhi-NCR. By the next week, the intent is to ramp up by at least 25 per cent,” said Pranay. 
 
With over 3,50,000 vehicles registered on its platform, Ola offers services across 102 cities in India.

Ola is pumping Rs 200 crore to increase fleet of CNG cabs in Delhi-NCR

Softbank funded <keyword id="6354720" type="PERSON" weightage="80" keywordseo="Ola">Ola</keyword> Cabs submitted an affidavit in the <keyword id="66" type="COMPANY" weightage="80" keywordseo="Delhi">Delhi</keyword> High Court that it will ply only <keyword id="3021852" type="UNKNOWN" weightage="80" keywordseo="CNG-cabs">CNG cabs</keyword> on the capital’s road from immediate effect, minutes before a contempt plea was to be heard against CEO <keyword id="1543567" type="COMPANY" weightage="80" keywordseo="Bhavish-Aggarwal">Bhavish Aggarwal</keyword>. 
 
Former Union Minister and senior advocate P. Chidambaram, appearing for ANI Technologies assured the court that Ola will roll back all diesel taxis in Delhi within two weeks. Admitting the affidavit, the court later said that the company can run only CNG based cabs in the city, as per a Supreme Court ruling of 2001. 
 
Ola also made changes to its app and the tweaked mobile application now asks a passenger whether he or she wants to ride to a destination within Delhi or outside. "If destination selected is within Delhi, only a CNG cab will arrive," an Ola spokesperson told ET. 
 
"We respect the orders of the Honourable High Court and will continue to be committed to building mobility for a billion people," Ola said in a statement. 
 Ola's move now puts the ball in <keyword id="1042120" type="PERSON" weightage="80" keywordseo="Uber">Uber</keyword>'s court which may face a similar contempt plea as it continues to run diesel taxis on the city's roads. 
 
Image credit: Indiatimes

Will ply only CNG cabs in Delhi: Ola tells Delhi High Court

<ul><li>Paid carpooling and ridesharing may be banned in Delhi by the committee in charge of reviewing the regulations of app-based cab operators. </li><li>Under the City Taxi Scheme 2017, permits only allow cab operators to pick up passengers from point A to point B, without any intermediary stops.</li><li>Considering Delhi’s parking, congestion and air quality problems, the fall out of such a ruling remains uncertain. </li></ul>The five-member committee currently reviewing the regulation of app-based cab operators like Uber and Ola in <keyword id="6358777" type="UNKNOWN" weightage="20" keywordseo="New-Delhi">New Delhi</keyword> is <a href="https://economictimes.indiatimes.com/industry/auto/auto-news/cab-pool-rides-likely-to-be-banned-in-delhi/articleshow/65976950.cms?utm_source=ETTopNews&amp;utm_medium=HP&amp;utm_campaign=TN&amp;utm_content=23&amp;from=mdr">unlikely to rule in favour of paid carpools</a>. With the national capital’s <keyword id="71724" type="PERSON" weightage="20" keywordseo="traffic-congestion">traffic congestion</keyword> problems and air quality issues, the consequences of this move may have ample environmental fallouts. Under the City Taxi Scheme 2017, cabs are only allowed to pick up and drop passengers from one point to the next. Currently legal provisions only allow buses to pick up other passengers along the route and make multiple stops. After effects Customers are going bear the ultimate brunt if the verdict rules in favour of banning of ride-sharing. Even if individuals choose to pay more and opt for solo rides, the increased congestion on the road with more people using individual cars, will add to the time opportunity cost. The increasing number of cars on the road could also spell worsening air quality in New Delhi. <a href="http://www.who.int/airpollution/data/cities/en/">According</a> to the World Health Organisation (WHO), Delhi has 292 micrograms per cubic meter of PM10 particles. That’s double the amount in Dakar, the second city on the list. The effect on the companies themselves is a different story. Recent reports <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/uber-ola-enter-slow-lane-in-2018/articleshow/65927443.cms">indicate</a> that while the absolute number of rides have been increasing, the companies are now growing at a slower rate. Experts believe that one of the reasons is the focus on ride-sharing. The ban could either be good for the companies if customers shift to solo rides. Or, bad if customers choose to shift to public transport altogether or find other alternative means of transportation. Other issues on the table In reviewing the regulations for cabs in the Indian national capital, the committee is also discussing the issue of green fuels and permits. Possible outcomes include enforcing that cabs only use fuels like CNG or LPG and providing proof of parking before applying for a permit. The biggest development to come is probably the tracking of cabs. Currently, cabs in the city aren’t monitored as they pick up and drop passengers. But the committee is considering adding GPS monitoring to the roster, not only for cabs in Delhi but for cabs that are registered in other states while operating within the city. For actual customers, the issues of greater relevance are the ‘panic’ button that will soon become a mandatory feature in cabs and putting a cap on the maximum fare that companies can charge from customers. If the scheme also goes through with its plan of limiting the number of cabs that can be put on call by a cab operator, the demand-supply disparity might even increase the overall prices in the market. The committee, that includes the transport minister Kailash Gahlot and Satyender Jain, a minister at the Public Works Department, is currently reviewing the City Taxi Scheme 2017, Licensing and Regulation of App-based Cab Aggregator Rules 2017 and app-based premium bus services. Sources have told Times of <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword> that this the committee is unlikely to rule in the favour of companies being allowed to operate ride-sharing in Delhi. They were originally supposed to come to a decision on Monday, but that has now be deferred to a date that is yet to be decided.

If Delhi has the worst air quality, why are paid carpool rides under the danger of getting banned?

Taxi hailing app <a href="http://www.businessinsider.in/You-may-soon-be-hopping-on-to-an-Ola-bus/articleshow/48155360.cms">Ola</a> would offer benefits worth up to Rs. 1 lakh to enable its driver partners to switch to CNG, in a move to comply with a <keyword id="6354977" type="ORGANIZATION" weightage="100" keywordseo="Supreme-Court">Supreme Court</keyword> ruling that says <a href="http://www.businessinsider.in/Ola-cabs-app-and-Taxi-For-Sure-get-into-a-relationship-Twitter-trolls-prove-how-complex-it-is/articleshow/47815748.cms">commercial vehicles</a> can not ply in Delhi unless converted to the single fuel mode of CNG. 
 As part of '<keyword id="6354720" type="PERSON" weightage="100" keywordseo="Ola">Ola</keyword> Green Pragati Week' from August 26 to September 1, <a href="http://www.businessinsider.in/Uberand-Ola-are-ensuring-that-their-drivers-wont-take-you-for-a-ride-again/articleshow/46742812.cms">Ola will bring together driver-partners</a> as well as financing and car manufacturer partners under one roof, it said in a statement. 
 Drivers in the city can purchase a new CNG car with benefits of up to Rs 1 lakh, including a discount of up to Rs 60,000 in partnership with dealers of manufacturers like Maruti, <keyword id="596" type="CITY" weightage="100" keywordseo="Hyundai">Hyundai</keyword> and <keyword id="42747" type="CITY" weightage="100" keywordseo="Tata-Motors">Tata Motors</keyword>, it added. 

	"We are committed to CNG adoption in the state of Delhi. The intention behind coming up with this scheme is to create an opportunity for all those drivers who are planning to buy new cars or willing to exchange their old cars to consider buying a CNG vehicle and contribute to a clean and green Delhi," Deep Singh, Ola Business Head (North), told PTI.
 

	With this, livelihoods of thousands of driver partners on the Ola platform will be protected and they can continue to work as entrepreneurs with Ola, he added. 
 

	A majority of cars on the <a href="http://www.businessinsider.in/Olas-reply-to-this-communal-tweet-has-everyone-patting-its-back/articleshow/46838463.cms">Ola platform</a> in Delhi are already on CNG. In the last one week, Ola added about 3,000 CNG vehicles to its fleet in the city. 
 

	The SoftBank-backed company has about 25,000 cabs in Delhi which are registered on its platform.

	 
	 
	(Image credits: Indiatimes)

Ola drivers to get Rs 1 lakh benefits to switch to CNG

Taxi aggregator <a href="http://www.businessinsider.in/searchresult.cms?query=ola&amp;sortorder=effectivedate">Ola</a> has applied for a city <a href="http://www.businessinsider.in/searchresult.cms?query=taxi+licence&amp;sortorder=effectivedate">taxi licence</a> in national capital, New Delhi under the name <a href="http://www.businessinsider.in/searchresult.cms?query=ola+fleet&amp;sortorder=effectivedate">Ola Fleet</a>. 
 
The app-only cab aggregator had applied for the licence on June 1 and the permit typically takes 30-40 days to be granted. 
 "New Delhi is one of the top three cities for both <keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> and <a href="http://www.businessinsider.in/searchresult.cms?query=uber&amp;sortorder=effectivedate">Uber</a>," ET quoted one of the sources as saying. 
 In July only, Ola got a licence to operate as an "on-demand transportation aggregator" in Bengaluru, whereas <keyword id="1042120" type="PERSON" weightage="20" keywordseo="Uber">Uber</keyword>'s application was rejected due to incomplete paperwork. 
 
"While Ola is trying to legalise its models to be on the right side of the government and investors, Uber is hitting the court with recommendations to the scheme and hoping to maintain the status quo till favourable regulations are passed," an official told ET. 
 
READ ALSO: <a href="http://www.businessinsider.in/Ola-Uber-will-train-one-lakh-drivers-for-government-now/articleshow/53377057.cms">Ola, Uber will train one lakh drivers for government now</a> 
 
Last year, the Delhi government had introduced the city taxi scheme, under which any one licence-holder cannot register more than 2,500 cars and needs to follow conditions such as installation of <a href="http://www.businessinsider.in/searchresult.cms?query=GPS&amp;sortorder=effectivedate">GPS</a> devices, taxi meters and fare regulation. 
 
Also, licence-holder will have to ensure every taxi is a motor cab with a valid fitness certificate issued by the transport department, is driven on CNG, LPG, has an engine capacity of 600 cc and above and a seating capacity not exceeding seven, inclusive of the driver. 
 
"Already, both companies have created an incentive structure in a way that makes it impossible for drivers to work with both the companies. With the leasing model, both Ola and Uber want to secure supply," Jaspal Singh, cofounder of the transportation sector consultancy Valoriser Consultants, told ET.

Ola has done something which will make it way ahead of Uber. Find out

Much like the <a href="http://www.businessinsider.in/searchresult.cms?query=Flipkart&amp;sortorder=effectivedate">Flipkart</a>-<a href="http://www.businessinsider.in/searchresult.cms?query=Amazon&amp;sortorder=effectivedate">Amazon</a> tussle in India’s <a href="http://www.businessinsider.in/searchresult.cms?query=e-commerce&amp;sortorder=effectivedate">e-commerce</a> space, the <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a>-<a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> battle in the online cab aggregation sector is also heating up. 
 
Looking to dominate India’s $9 billion industry, both taxi-hailing apps are promising hundreds of millions in new investment, and are willing to go that extra mile to offer Indians a ride, and more. The battle for the Indian market has even been dragged from the streets to the Court. 
 
Here are a few grounds where <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> locked horns, just to get a bigger piece of the Indian pie: 
 
Raw Money Power: 
Looking at the lack of adequate public transport in Indian cities, <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> have together promised an hefty investment of over $2.25 billion in India. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> reportedly plans to pump over $500 million by June in India. This is over and above the $1 billion already committed over the past nine months. That is some serious money. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> hasn’t been left wanting either. It has promised to add another 2,000 cars to its existing fleet of 26,000 in the nation’s capital. It is backed by the likes of <a href="http://www.businessinsider.in/searchresult.cms?query=SoftBank&amp;sortorder=effectivedate">SoftBank</a>, and some of the most cash-rich VCs in the world. 
 
WiFi in Autos? 
<a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> both began offering in-car WiFi last year. 
 
However, <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> has been pulling out all its stock to go up against <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a>. The company plans to launch WiFi services in the budget cab segment, and even its auto-rickshaws. 
 
Some wonder how that's humanly possible at the current cost. 
 
Legal Battles: 
Interestingly, both taxi aggregators have been in legal wrangles. 
 
In October 2015, <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> filed a legal petition, accusing <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> of flouting a Supreme Court order demanding app-based taxis in New Delhi switch from running on diesel to using CNG (compressed natural gas). 
 
A few months on, <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> recently sued <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> for allegedly creating 93,000 fake <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> accounts, and tampering its businesses. The company has been seeking around $7.4 million in damages. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> claims <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> employees used bogus accounts to book and cancel a whopping 400,000 rides over the last six months. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> allegedly had to pay high cancellation charges to drivers due to this. It claims around 20,000 drivers quit the platform in frustration. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> officials 'categorically deny’ <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a>'s allegations of fraud. Senior officials Anand Subramanian and Rahul Maroli told Business Insider they 'stand by' their statement. 
 
Accusations: Both <keyword id="6354720" type="PERSON" weightage="60" keywordseo="Ola">Ola</keyword> and <keyword id="1042120" type="PERSON" weightage="60" keywordseo="Uber">Uber</keyword> have been accused of wrong-doing. 
 
Recently, <a href="http://www.businessinsider.in/searchresult.cms?query=Paytm&amp;sortorder=effectivedate">Paytm</a>-backed online transportation app <a href="http://www.businessinsider.in/searchresult.cms?query=Jugnoo&amp;sortorder=effectivedate">Jugnoo</a> alleged Ola has adopted unethical practices against it. In a blog post, the company claims Ola employees made fake bookings, and tried to hamper its operations. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Jugnoo&amp;sortorder=effectivedate">Jugnoo</a> CEO Samar Singla has said his team saw a sudden surge in bookings and cancelations. According to him, around 20,000 cancelations were made through 800 accounts over a 10-day period earlier this month. In December, the auto-rickshaw aggregator had accused Ola of poaching employees and driver database in Chandigarh. 
 
Uber has made similar claims against Ola. Ola spokesperson <a href="http://www.businessinsider.in/searchresult.cms?query=Anand+Subramanian&amp;sortorder=effectivedate">Anand Subramanian</a> maintains this to be Uber’s way of ‘payback’ for the legal petition Ola filed, accusing Uber of flouting a Supreme Court order. 
 
Interestingly, Uber’s rivals <a href="http://www.businessinsider.in/searchresult.cms?query=Lyft&amp;sortorder=effectivedate">Lyft</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Gett&amp;sortorder=effectivedate">Gett</a> had in 2014 complained against the aggregator of making false bookings, and recruiting Lyft and Gett driver partners for its own service. 
 
Experiments gone wrong: 
In an attempt to find new battlegrounds, Ola and Uber both launched their bike-taxi services in India’s Bengaluru on the very same day. 
 It seems both knew of each other’s plans and neither wanted to be left behind. However, neither was fully ready. Several users claimed not a single <keyword id="3149752" type="UNKNOWN" weightage="20" keywordseo="bike-taxi">bike taxi</keyword> was visible. 
 
Both were offering extremely competitive rates. Ola has a per km rate of Rs 2, and a minimum fare of Rs 30. Uber has a per km rate of Rs 3 and a minimum fare of Rs 15. 
 
However, Ola was forced to roll back its service a few days later after the Karnataka state government said that India’s Motor Vehicle Act doesn’t have a provision for two wheelers to be used as taxis. Simply put, the bike taxi services were illegal. 
 
When asked about the same, Ola COO Pranay Jivrajka refused to comment on the issue. 
 
However, Uber bike taxis continue to ply on Bengaluru’s (earlier Bangalore) roads. 
 
This isn’t the first time this has happened. As rival Uber was turning up the heat, Ola started experimenting with hyper-local food and grocery delivery. 
 
It was later forced to shut these and focus on serving its core business. Although, it went on an overdrive, introducing new categories like Micro, Prime, a shuttle bus service and carpooling in a very short span. 
 
Regulatory hassles: 
While Uber has been facing regulatory hassles worldwide, and has the muscle to lobby for friendlier policies, Ola is still pretty new to such complications in business. 
 
Recently, Indian state Karnataka stood firm on not allowing surge pricing for app-based ride hailing services such as Ola and Uber. In the state, online taxi aggregators operate as ride-hailing service under a license obtained under the Radio Taxi Scheme, 1988. 
 
The policy says the charged fare cannot be higher than the fare fixed by the government. That means transport apps have to charge within a band where the upper limit is capped. Ola COO <a href="http://www.businessinsider.in/searchresult.cms?query=Pranay+Jivrajka&amp;sortorder=effectivedate">Pranay Jivrajka</a> told BI the company's 'working together' with the state government to find a feasible solution. 
 
Way back in August, in a major setback to Ola Cabs, the Delhi High Court dismissed its plea challenging a single-judge order upholding Delhi government's ban on such taxi services. 
 
While Ola argued that non-app based taxi organizations also come under the Radio Taxi Scheme, and that Ola doesn’t own these vehicles anyway, the Delhi government had said the All India Tourist Permit (AITP) vehicles that operate under Ola brand are meant for tourist destinations and not point-to-point service in city. 
 
Online taxi aggregators were finally legalized. 
 
Chest Thumping 
Ola and Uber have both thrown around numbers that hardly make sense if put together. 
 
In a recent interview, Ola’s Chief Marketing Officer and Head of Categories Raghuvesh Sarup said, "In three weeks, we have put up a category (Ola Micro) which is already 50% of all of Uber's daily bookings in the country. The rate at which Micro is growing, it will be larger than their entire brand within a month." 
 
On the other hand, Eric Alexander, President of Uber's Asia business, in an interview said his company was on the verge of overtaking Ola in India. "In January last year, we were at five per cent market share. Now, we are right at the edge of 50 per cent. Within next 30 days, we would beat them (Ola). We will surpass them very, very shortly." 
 
The statistics are even more confusing. Ola claims it holds 75% of the Indian app-based taxi-hailing market, with over 350,000 driver partners on its platform across the country, while Uber claims otherwise. 
 
As the cut-throat fight between Uber and Ola continues, some say it’s reminiscent of Uber’s tussle with Lyft in the U.S. The two San Francisco-based rivals were constantly undercutting each other’s tariffs, poaching each other’s drivers and duplicating services. 
 
Let’s just say its the same war, but with some Indian masala.

The Ola-Uber rivalry in India – when
competition became ridiculous

It’s been a few days since the Delhi government has forced <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> to suspend <keyword id="6405687" type="UNKNOWN" weightage="80" keywordseo="Surge-Pricing">surge pricing</keyword>. 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. 
 
Delhi Chief Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Arvind+Kejriwal&amp;sortorder=effectivedate">Arvind Kejriwal</a> recently said driver permits would be canceled if they follow surge pricing. However, an <keyword id="1042120" type="PERSON" weightage="60" keywordseo="Uber">Uber</keyword> spokesperson claimed today that despite suspending surge, some <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Ola&amp;sortorder=effectivedate">Ola</a> cars were impounded. 
 
“They (Delhi Traffic Dept.) have (impounded cars) yesterday, despite us suspending surge”, <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> Spokesperson Ruchica Tomar said. However, when asked about possible legal action from the company’s end, she refused to comment. 
 
This is in sharp contrast to what the Delhi Chief Minister recently tweeted about the real condition of Delhi’s roads. 
<blockquote class="twitter-tweet" data-lang="en">
	
		Overcharging, diesel cars, drivers without license/badges n blackmailing by taxi aggregators won't be allwed(2/2) — <keyword id="260213" type="PERSON" weightage="40" keywordseo="Arvind-Kejriwal">Arvind Kejriwal</keyword> (@ArvindKejriwal) <a href="https://twitter.com/ArvindKejriwal/status/722654098525417478">April 20, 2016</a></blockquote>
<a href="http://www.businessinsider.in/searchresult.cms?query=Arvind+Kejriwal&amp;sortorder=effectivedate">Kejriwal</a> has even called surge pricing ‘daylight robbery’ and said ‘no responsible govt can allow that’. The minister went far enough to say: 
 
<blockquote class="twitter-tweet" data-lang="en">
	
		Some media houses supporting surge pricing. One of these media houses has Rs 150 cr investment in one of these taxi aggregators
	— Arvind Kejriwal (@ArvindKejriwal) <a href="https://twitter.com/ArvindKejriwal/status/722648610899406848">April 20, 2016</a></blockquote>
As for <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a>, there’s no second way. “Surge is the very basis of how we predict demand and supply, and how we match up to it. We’re having a hard time catering to this unusually high demand during <a href="http://www.businessinsider.in/searchresult.cms?query=Odd-Even&amp;sortorder=effectivedate">Odd-Even</a>. We’re trying to engage with the government to figure out a way”, the <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber </a>spokesperson said. 
 <keyword id="6354720" type="PERSON" weightage="80" keywordseo="Ola">Ola</keyword> and <a href="http://www.businessinsider.in/searchresult.cms?query=Uber&amp;sortorder=effectivedate">Uber</a> both confirmed there are no plans to add more cars overnight, and that they have only temporarily suspended surge. “There is no definite time period that we’ve suspended surge for. People are confusing it with <a href="http://www.businessinsider.in/searchresult.cms?query=Odd-Even&amp;sortorder=effectivedate">Odd-Even</a>”, the Uber spokesperson said. 
 
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 issue of surge pricing is not limited to Delhi only. Various State governments are raising red flags against surge-based models. This has opened up a wider debate on whether its anti-competitive to charge more when there’s more demand, or if its fine to not offer a cab even if someone’s willing to pay more. To put it in <a href="http://www.businessinsider.in/searchresult.cms?query=Kunal+Shah&amp;sortorder=effectivedate">Kunal Shah</a>'s (Co-founder, FreeCharge) words, “If someone wants to pay twice or thrice to get a cab for an emergency, who is the victim?” 
 
Uber and Ola have been in the line of fire of governments, first with taxi permits, then CNG, and now this. 
 
Image credit: Indiatimes

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

Lately, there has been huge confusion surrounding <keyword id="6405687" type="UNKNOWN" weightage="100" keywordseo="Surge-Pricing">surge pricing</keyword> of cab rides in India and the advent of numerous <a href="http://www.businessinsider.in/The-global-alliance-against-Uber-just-came-online/articleshow/51787248.cms">taxi aggregators entering the market</a>. <a href="http://www.businessinsider.in/Demand-for-taxis-go-down-forcing-Uber-and-Ola-to-launch-innovative-services-to-remain-relevant/articleshow/51790235.cms">Ola and Uber</a> advertises themselves to be one of the cheapest <a href="http://www.businessinsider.in/Delhi-gets-its-first-Bike-taxi-service-before-Odd-Even-makesa-comeback/articleshow/51741514.cms">taxi service</a> providers with fares as low as Rs. 7/km, however, one ends up paying as much as Rs. 37/km with surge pricing. And customers have no other choice but to pay. Little do they know that in 2013 the government has specified a fixed fare of Rs. 12.50 for economic radio taxis and Rs. 23 for other radio taxis, in addition to night charges! 
 Hence, <keyword id="3164614" type="UNKNOWN" weightage="100" keywordseo="Magic-Sewa">Magic Sewa</keyword>, a transport start-up with an all-sedan fleet of 100% CNG taxis, has filed a petition against surge prices and compliance of government notified fares was heard on Friday last week by Justice Midha. 
 
“We had filed the petition for the enforcement of fares as notified by the government of Delhi and against surge pricing, both being violation of section 67 of the Motor Vehicles Act, 1988,” said Rakesh Agarwal, Director &amp; CEO, Magic Sewa. 
 If an autorickshaw overcharges even by Rs.10, it has to pay a fine of Rs.5,000 but the Unlicensed <keyword id="2608137" type="UNKNOWN" weightage="100" keywordseo="taxi-aggregators">Taxi Aggregators</keyword> are charging as high as 3 times the prescribed fares but still no action is being taken against them even after numerous complaints. 
 
Section 67 also says that a taxi cannot charge lower than prescribed fare because it will cause uneconomic competition among holders of permits. However, Unlicensed Taxi Aggregators routinely advertise fare as low as 40% of the government notified fares. 
 
“But they often manipulate the figures in such a way that a passenger ends up paying 4-5 times as much,” he said. 
 <keyword id="6354720" type="PERSON" weightage="100" keywordseo="Ola">Ola</keyword> declined to comment. We are awaiting <keyword id="1042120" type="PERSON" weightage="100" keywordseo="Uber">Uber</keyword>'s response. 
 
The court directed Delhi Government to file a status report. This essentially means two things. One, if it is true that nothing lower or higher than prescribed fares can be charged. Two, if it is true that Unlicensed Taxi Aggregators are violating the law and government notified fares through the mechanism of surge pricing and manipulative fares. 
 
The matter will be heard on 18th April. 
 
(Image credits: indiatimes)

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