Thursday , September 20 2018

Surge Prices for cab aggregators like Uber and Ola in India

Surge Prices for cab aggregators like Uber and Ola in India

Uber is a ride sharing app for fast, consistent rides in minutes at any time either day or night. Now you need to wait for taxi or bus if you want to move to other place during odd timing. Using Uber you can also pay using credit or cash in select cities and enjoy your ride without any hassle.

Surge Prices for cab aggregators like Uber and Ola

Whether you are going to the airport or across town, there is an Uber for every time. Uber provides its services in more than 500 cities all over the worldwide. You just need to download the app from Google play store and take your first trip today.

Ola is the India’s most well-liked mobile app which is used for transportation, put together city transportation for clientele and driver partners with the help of mobile technology platform. As one of India’s fastest growing companies Ola make sure the convenient, transparent and rapid service fulfillment using technology to make transportation annoy free for everybody.

By using Ola mobile app, one can able to book varieties of Ola cab which they offer, right form A/c Cabs to ferry buses customers of Ola can able to book the needed vehicle which they afford. In short time of period, the business of Ola cabs have reached many people across the nation. In about 102 cities of India the Ola cab services has been introduced and running successfully. Near about 45 thousand rent vehicles are run under the roof of Ola cabs in those cities of India.

What is Surge pricing?

Surge pricing is a system where when require of taxis need more compare to routine. With increase in demand the rates will also increase side by side. According to The taxi aggregators these changes are done just to meet increased demand. And they have less impact of these changes. After these changes more drivers will attract to the area, and as a result, the increased demand can be met.

These rates will get normal once the demand and supply is balanced. These changes are done usually some intervals like during holidays when demands of taxi are more, during peak hours and events, etc.

Government has released new norms regarding surge prices for cab aggregator

The present Government of India led by Mr. Modi has allowed call taxi aggregator to implement the surge prices on their customers; earlier the surge prices have raised controversy in between the government policy and customers using those cab services. Now, it has been given clean hit by allowing the surge prices introduced by those cab aggregators.

Apart from allowing the surge prices that has been introduced by the call taxi aggregator, the government have approved online cab aggregators to increase those surge prices up to 3 times from their base fare during the high demand duration at day timings. And allow increasing the surge prices up to 4 times of their base price during the high demand time at the night timing especially from 12Am to 5AM.

Meanwhile, the government have ordered all the taxi aggregators who are using online based booking facilities to submit their minimum fare along with the aggregators plan to the state transport department so that misusage of the plan can be avoided.

S.No Things Need to Know about New Norms for Rise in Surge Price Detailed Information
1 Hike in Surge Price during day timing About 3 Times of the normal fare
2 Hike in surge price during night timing Around 4 times from the normal fare
3 States which banned Surge Prices Before Delhi and Bangaluru
4 Online Taxi Aggregators can work with Local taxis and All India Tourist Permit
5 Impact of this new norms Will boost innovative entrepreneurship in India

Centre government give this decision but in spite of this Delhi government already banned surge pricing in NCR, and even down South, the Karnataka state government also put a stop to this practice. At the same time, the government has set a maximum cap amount for surge prices that can be charged by the taxi aggregators plan. Government keen on protecting consumer interest and to keep monitoring the call taxi aggregators plan, in order to maintain the perfect relationship in between cab aggregators and the users.

Impacts of Implementing this new norms

  • This new price raise will be implementing for the vehicles which are less than four meters in length. Also Taxi which comes under the new increase in rates must follow the local fuel and other regulatory norms.
  • They are also having permission to have an app based metering system that must be authenticating by an agency approved by the IT ministry.
  • With these changes general public is not very happy and put their frustrations using the social media sites, however, it is expected the concern authorities would take necessary action to sort out the difficulties faced by the public.

Though, it seems like government supporting cab aggregators by allowing there surge prices, after monitoring the high demand situation and to regularize the mode of operation the government of India have implemented this new norms for surge prices on taxi aggregators plans. Also, the move taken by the government will boost cab operators to extend their services which might results giving employment opportunities to eligible people.

Is it good to put Surge pricing rising rule in action?

According to the general public, it should not but aggregators wants it should be. The major subject with surge pricing is the lack of transparency in the system and the awkwardness of the surge.

But according to the government it is predictable that this policy of the Surge pricing rising would assist in a healthy enlargement of the taxi industry.  The policy is recommendatory in nature and would assist to offer a particular framework to assist the States in framing detailed regulations.


As per the recently announced norms boost the taxis owners who included in Online Taxi Aggregators can able to get more surge charges during the high demand timings. Though few states banned such activities, the new government has allowed such surge pricing among the online taxi aggregators on accounting to boost the entrepreneurship among the talented youths. On witness this opportunities, more cab organization will born in the nation.

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