Arvind Kejriwal terms taxi surge pricing as 'daylight robbery'

Delhi Chief Minister Arvind Kejriwal today termed the surge pricing model used by app-based taxi operators as "daylight robbery", and said "overcharging" and "blackmailing" won't be allowed in the national capital.

"Surge pricing is daylight robbery. No responsible govt can allow that," he tweeted.

"Some taxis saying they will not provide cabs if they are not allowed to loot. This is open blackmailing and government will not let that happen. Overcharging, diesel cars, drivers without license/badges n blackmailing by taxi aggregators won't be allowed," he posted in a series of tweets.

He also clarified that the government was not against taxi aggregators, who provide valuable services to people, but "they will have to follow law."

Delhi government had impounded 18 cabs belonging to Ola and Uber for charging fares more than the prescribed rates during the odd-even car rationing period on Monday. An order was issued to the transport department to take strict action against such companies in the face of mounting criticism for the manifold increase in fares.

Ola and Uber suspended 'surge pricing' after Kejriwal ordered strict action, including permit cancellation and impounding against overcharging by taxis.

Surge pricing is a technique used by Uber and Ola to raise fares to provide drivers the incentive of keeping their cab running while also making it available to the user irrespective of the demand.

-PTI