RSS affiliate urges Gadkari to reduce Uber, Ola surge pricing limit in public interest

The Swadeshi Jagran Manch has opposed the Modi govt's move to allow Uber & Ola to charge customers up to three times the normal fare during peak hours.

Uber app on a phone | Commons

New Delhi: The Swadeshi Jagran Manch (SJM), an economic policy group linked with the RSS, has trained its guns on surge pricing by cab aggregators Uber and Ola. The outfit has opposed the government’s move to allow app-based platforms to charge customers up to three times the amount during peak hours.

Accusing the taxi services of profiteering under the garb of dynamic pricing, the SJM has urged Union minister Nitin Gadkari to frame regulatory rules under the new Motor Vehicles Act 2019, keeping in mind consumers’ interests.

In the SJM’s letter to Gadkari, its all-India co-convener Ashwani Mahajan sought time from Gadkari’s Ministry of Road Transport and Highways to discuss in greater detail the framing of regulatory rules.

“Uber and Ola, which started activities in India in 2014-15 to provide lower cost and convenient taxi services, have started profiteering under the ambit of surge pricing. Just in the last two weeks, we received screenshots where a fare of Rs 2,000 was quoted in Mumbai for a six-minute ride. This is outrageous and plain profiteering by these platforms,” reads SJM’s letter.

Letter cites public survey

Mahajan’s letter cites a public survey that highlights various issues faced by riders from across the country with app-based taxi services. According to the survey, people want surge pricing to be capped at no higher than 25 per cent, and if the ride is cancelled by an aggregator or its driver, for an amount equivalent to 20 per cent of the fare to be deposited as penalty in the customer’s account.

“Please note that currently the apps levy a penalty when a customer cancels a ride but the same doesn’t work the other way around. Survey also suggests that app taxis should not be permitted to apply surge pricing on advance/scheduled bookings. Basic customer service and app features must be standardised to facilitate speaking with customer service centre in case of an emergency/need,” SJM’s letter states.

“It is our request that the taxi aggregator rules under Motor Vehicle Act 2019 are made keeping the above public interest in mind. If that is not done, it would be an unpopular move and we may risk the states coming up with their own rules and setting lower limits of surge pricing for taxi aggregators,” the letter adds.