Cabs not available, Uber blames ban on ‘surge pricing’

COMMUTERS ACROSS Delhi complained of non-availability of taxis Tuesday, a day after appbased cab companies suspended “peak time charges” following a strict warning from the Delhi government.

Taxi service Uber blamed the unavailability of cars on the suspension of ‘surge pricing’. In a text message sent to registered passengers Tuesday, the company said, “If you are seeing no cars available or longer wait time, that’s because of suspension of surge. Surge ensures there’s a car available at all time...”.

Explaining how surge pricing impacts availability of cabs, an official of a taxi service said, “When demand rises, prices surge in proportion, enticing more drivers to come on the roads. We receive roughly 20 per cent of the fare, the rest goes to the driver. This increases the supply of cabs and results in a drop in demand and prices.”

“During surge pricing, only the most needy passengers take cabs. When surge pricing is removed, everyone rushes in to book cabs, which automatically limits availability for other customers after some time,” added the official.

However, a spokesperson of the Delhi government accused the cab services of non-cooperation, saying, “We have nothing against any private company. We only want everybody to go by the rule book. Many cab companies have been plying illegally on Delhi streets and cases are pending in court. They are not transparent in their dealings and market mechanisms, especially when it comes to pricing. They have not been cooperating with the government at all.”