Calling current surge pricing techniques by Uber and Ola “outrageous and plain profiteering,” Rashtriya Swayamsevak Sangh (RSS) affiliate Swadeshi Jagran Manch urged Union Minister of Road Transport and Highways Nitin Gadkari to regulate surge pricing under the Motor Vehicles Act, 2019.
“As per media reports, Ministry of Road Transport and Highways (MoRTH) is considering allowing surge pricing to the extent of three times of normal fare, which has also been permitted in the guidelines issued by MoRTH in Dec 2016,” the letter states.
The letter states that Indian consumers don’t want surge pricing above 25 per cent, according to a survey by LocalCircles. It refers to screen shots of a Rs 2,000 ride in Mumbai that was six minutes long. It adds that the company should pay a penalty to the customer for canceled rides.
“It is our request that the taxi aggregator rules under Motor Vehicles 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 said.
Uber and Ola did not respond to questions. On September 10, Finance Minister Nirmala Sitharaman said that one of the reasons for a slowing automobile market was the “mindset of millennials” that prefer to travel by Uber and Ola.