Ban on surge pricing, introduced for the ongoing phase of the “odd-even” scheme, will be made permanent and all app-based taxi aggregators will have to charge fares being fixed under a new policy, the Delhi government announced today.

Chief Minister Arvind Kejriwal termed surge pricing as “daylight robbery” and said overcharging and blackmailing won’t be allowed in Delhi. Under surge pricing, app-based taxi service providers like Ola and Uber hike the rates when demand outstrips supply.

“Yes. We will do it,” Kejriwal tweeted replying to a suggestion on why the government was not continuing with ban on surge pricing permanently.

In its reaction, leading taxi aggregator Uber criticised the move, saying without surge pricing, there would be no cars available when people need them.

“Higher prices are required in order to get cars on the road and keep them on the road during the busiest times. This maximises the number of trips and minimises the number of people stranded. The drivers have other options as well. In short, without surge pricing, there would be no car available when people need it,” the Uber said in a statement.

The US-based company said 92 per cent of the trips in Delhi happened on regular fares, even during the first phase of odd-even scheme. Kejriwal clarified that the Delhi government was not against taxi aggregators, who provide important service to people, asserting they will have to follow the law. “Surge pricing is daylight robbery. No responsible govt can allow that.”

Separately, Transport Minister Gopal Rai said a policy will be introduced soon under which app-based taxi companies will have to charge fares fixed by the transport department.

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