Ola, Uber can’t charge more than govt-prescribed rates: High Court

Direction came on plea against ‘surge pricing’ during peak hours

July 26, 2016 12:00 am | Updated 05:52 am IST - New Delhi

Facing flak:Ola and Uber have been accused of overcharging customers.File Photo: Sushil Kumar Verma

Facing flak:Ola and Uber have been accused of overcharging customers.File Photo: Sushil Kumar Verma

: The Delhi High Court on Monday made it clear to app-based taxi service providers Ola and Uber that they cannot charge customers more than the rates prescribed by the AAP government.

The direction from Justice Manmohan came on the issue of ‘surge pricing’ resorted to by the taxi services during peak demand, which has been challenged in the court.

The lawyer for ANI Technologies, which runs Ola, told the judge that the firm would not charge beyond the stipulated rates of the Delhi government and that it be allowed to give discounts to its customers.

The court directed Ola to file its submission along with an affidavit before the next date of hearing on August 9.

The lawyers for Uber sought time to seek instruction on whether the company was still charging beyond the prescribed rates.

Pocket pinch

According to prescribed rates, fares for all types of taxi services are Rs. 12.50 per km for Economy Radio Taxis, while Rs. 14 per km and Rs. 16 per km would be charged by non-AC and AC black and yellow top taxis, respectively.

The notified fare of Radio Taxi cabs (distinguished by an LCD board on rooftop displaying “Radio Taxi”) is Rs. 23 per km. Additional night charges (25 per cent of the fare) are applicable between 11 p.m. and 5 a.m.

Uber told the court that the government’s 2015 City Taxi scheme did not apply to it and thus, it was not agreeing that the cap prescribed would apply to it.

Ola also told the court that it too had raised the plea that the scheme did not apply to it.

The judge, thereafter, asked the Delhi and Central governments to inform him whether they were agreeable to the court setting up a panel for framing guidelines for app-based taxi services which claim to be aggregators, different from radio taxi companies.

“Panel I will set up. You have to consent to it. Take instructions on it,” Justice Manmohan said.

The court was hearing petitions filed by an association of radio taxi operators and Ola.

While the association has alleged that Ola and Uber are operating without any licence, overcharging customers and the government is not doing anything, Ola has accused Uber of overcharging and not complying with court orders. -PTI

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