Surge pricing back in Delhi after odd-even, Kejriwal warns of action

May 02, 2016 08:16

Taxi aggregator Uber brought back surge pricing on Sunday in Delhi, prompting Chief Minister Arvind Kejriwal to warn the operator of "strong action'.

Uber had introduced the provision during the second phase of the odd-even scheme, and the move was objected to by commuters. Kejriwal had asserted that such demand-linked hikes would be banned permanently.

Surge pricing is a business practice in which companies charge higher rates than normal to encourage more drivers to offer rides when demand for taxis outstrips supply.

A day after the second phase of the odd-even scheme aimed at curbing air pollution ended on April 30, commuters across the city who availed of the services of the app-based cab firm found that surge pricing was back.

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