Surge pricing won't be allowed; Delhi govt's new policy to keep a check on app-based cabs

With an aim to regulate app-based taxi services, the APP government in Delhi has drafted a policy under which cab aggregators will be bound to charge fares prescribed by the Transport Department.

Delhi Transport Minister Satyendar Jain said the policy will soon be put forth for public's suggestions for 15-30 days and then sent to the Lt Governor for his approval.

As per the new policy, cab aggregators will not be allowed to implement surge pricing and they will have to charge fares only through meters. The companies will also have to install Global Positioning System (GPS) in taxis being operated under their banner for passengers' safety, especially women.

Last month, 20 unions of the city's autorickshaws and yellow-black taxis had gone on an indefinite strike to demand regulation of app-based taxi services by the government, saying their business was being adversely affected.

"The policy will be exclusively for all the app-based taxis giving their services in Delhi. We will fix fares for them as we have done in the case of radio, economy cabs and yellow-black taxis," the transport minister said.

He added, "They can charge minimal fares, but they cannot charge more than the fares prescribed by the Transport Department. All app-based taxi services will be regulated through this policy."

Once the new rules are laid down, app-based cab companies will be bound to follow the same, he said.

A senior official said several app-based cab companies, including Ola and Uber, are not registered with the Delhi government's Transport Department, but they are still plying their vehicles in the capital.

Under the new policy, these companies will have to seek a licence to operate their taxis.

Yesterday, the Delhi High Court stressed upon the need for "good" and "model" law for regulating app-based cab services, like Ola and Uber and said it will be helpful to the people and would bring in more clarity.

Justice Manmohan had said he would set up a panel comprising two senior officials each from the Delhi government and the Centre and one expert who can then hear all the stakeholders, including app-based cab services, radio taxis and consumers, and then come out with a model law.

Last August, the AAP government had announced a new scheme 'City Taxi' for all taxi services including app-based, but it did not get a good response.

During the second phase of the odd-even scheme, Chief Minister Arvind Kejriwal had also slammed the app-based cab aggregators for surge pricing, terming it as "daylight robbery".

He had also asserted "overcharging and blackmailing won't be allowed" in the national capital.

After the Chief Minister's warning against surge pricing, the Transport Department had launched a drive against cab services charging exorbitant fares from passengers.