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Uber and Ola suspend surge prices after Delhi govt issues warning

Speed News Desk | Updated on: 18 April 2016, 18:51 IST

The Delhi government on 18 April ordered to impound cabs including those belonging to app-based cab services Uber and Ola if they were found to charge more than government prescribed limits.

Uber and Ola responded by saying that that they are temporarily suspending surge prices that varied from three times the usual rate to five times with immediate effect.

The Kejriwal-led government has also released a helpline number for the Delhi residents to report taxis that overcharge. The helpline number is 01142400400.

This comes after the Delhi High Court issued a notice to the Delhi government asking them to file an immediate reply on the steps taken to stop taxi-aggregators like Ola and Uber from charging fares arbitrarily. The notice came on the heels of a petition filed by radio cab company Magic Sewa Private Limited, alleging that certain app-based cab companies like Ola and Uber do not comply to the fares under the Motor Vehicles Act.

Additionally, the Bharatiya Mazdoor Sangh had also threatened to go on a strike demanding action against the illegal operation of the app-based services and that they were a clear threat to their livelihood. However, the union called off the strike after the leader stated that Delhi government had complied to most of their demands.

First published: 18 April 2016, 18:51 IST