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600 app-based cabs seized for surge pricing

Last Updated 29 May 2016, 20:06 IST

Nearly 600 app-based taxis have been impounded by the enforcement wing of the Transport Department for using surge pricing despite a ban, an official said.

“Out of the 591 taxis impounded, 400 belong to a controversial big player whose drivers have been involved in crimes against commuters,” said an official, adding that checking surge-pricing was proving to be a big challenge for the transport department due to its limited resources.

During the action against app-based cabs and private buses between May 1-26, enforcement teams also caught vehicles from other states which were running as taxis in Delhi.

Surge pricing was banned by Chief Minister Arvind Kejriwal during the odd-even scheme last month when commuters complained of exploitation by the app-based aggregators.
“Over 60 teams of the enforcement wing were deployed during the drive. The focus of the drive was around inter-state bus terminals and Ring Road,” said an official.

During the drive, the Transport Department also penalised 166 contract buses for violating permit conditions during focused action on buses between May 13-24.

“Many of the buses impounded by us were holding national permit but these were functioning like stage carriages and picking up passengers from different points and ferrying them to NCR towns. This is not permitted under the rules,” he said.

On disciplining app-based cab aggregators, an official said a major app-based taxi operator recently assured the Delhi government that it would follow the rates set by the Delhi government yet its cabs were found collecting surge price from commuters.

“The company even claims that the per km rate it charges is less than the rate fixed by the government,” said the official.
The action against cab aggregators and contract buses comes close to the proposed rollout app based premium buses in the city from June 1. Registration of bus aggregators is likely to begin in the first week of next month, while the premium buses would hit the road by mid-June.

The proposal has run into trouble with Lieutenant Governor Najeeb Jung showing a red light to it. Jung has sought clarification from the AAP government on the proposal amid reports that his name was illegally used in a notification by Arvind Kejriwal government early this month.

Sources said Jung was also looking into allegations that there was an attempt to favour a particular aggregator in the premium bus scheme.

According to Transport Minister Gopal Rai, the introduction of app-based buses will encourage car users to switch to air-conditioned buses, with facilities like app-based seat booking, GPS tracking, availability of free WiFi and CCTV monitoring. 

Private passenger aggregators with a minimum of 50 buses can register under the scheme, recently notified by the government. Fine ranging from Rs 2,500-5,000 would be imposed on app-based bus aggregators if their vehicle’s staff ferries commuters without advance ticked booked through app. 

Rai has made it clear that the fares of premium buses will not be regulated or subsidised by the government.

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(Published 29 May 2016, 20:06 IST)

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