Government starts cracking down on Uber and Ola drivers in India due to surge pricing

By on April 17, 2016 | News

Soon after the Karnataka government announced ban on surge pricing, Uber started lobbying against the decision. However it appears that it hasn’t done any good to the US based cab hailing service or its local rival Ola and the government is striking on the operations of the two brands in Bengaluru.


According to a report by Livemint, Rama Gowde, Bengaluru based commissioner of transport and road safety has shared that more than 30 Uber and Ola vehicles have been impounded for allegedly overcharging customers and the operations continue to crack down on more.

Earlier Karnataka government issued instructions that the cab hailing companies would have to operate at the prices announced by the government. Some users also signed an online petition against the surge pricing used by Uber. The cab hailing companies however, are against the decision and keep highlighting the fact that surge pricing is simply bridging the gap between demand and supply. Some industry experts even went ahead saying that government shouldn’t intervene in something they don’t understand.

To strengthen this point, Uber published a detailed post on its blog explaining the concept of surge pricing and sent personalised mails to users highlighting the total amount they have paid recently in their Uber rides and how much they would have paid extra if calculated by the flat pricing that the government is trying to enforce.

The commissioner of transport has also announced that the travellers are encouraged to file police complaints if they subjected to surge pricing.

Source: Livemint


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