Magic Sewa , a taxi service that operates in Delhi, has raised concerns over the surge pricing charged by app-based taxi services Ola and Uber. This comes after the Delhi government has set a price cap on the surge.
“The Delhi government has passed a rule against the surge charges to curb the discriminatory pricing such as discounts and offers that disrupt the competition in the transport sector,” informs Vaikundarajan. Naturally, other taxi services raised a voice feeling threatened.
Another twist in the tale followed as Justice Manmohan rejected the contention stating that this issue should be submitted to anti-trust regulator, Competition Commission of India.
“The Delhi government has set the rates for radio cabs at Rs 23 per km in Delhi with the night charges being set at 25% above the fare. On 11th August, the court thwarted the surge charges for app-based taxi services and asked the central government to come up with a policy to govern all cab services nationwide,” says Vaikundarajan.
The case will be heard along with other cases challenging the legality of app-based aggregators in the country.