End to ‘predatory pricing’ will hurt Ola, Uber riders

Drivers of city taxis not attached to the aggregators have complained for a long time that “predatory pricing” is pushing them out of business. (File Photo)

Among the slew of orders, the transport authorities issued to cab aggregators, putting an end to special offers would particularly hurt the commuters.

Both Uber and Ola offered up to 50% reduction of fares to commuters who frequently booked rides on their platforms. But transport commissioner V P Ikkeri said such incentives should not kill competition.

“Incentivising to lure passengers is not allowed. If one company offers incentives, the other will be forced to do the same despite losses,” he said, adding that cab aggregators to charge the fare fixed by the transport authority.

Drivers of city taxis not attached to the aggregators have complained for a long time that “predatory pricing” is pushing them out of business.

The commissioner also forbade aggregators from introducing value-added services and collect additional convenience charges since they do not have provisions for such services in the license issued to them or in the Motor Vehicle Act.

Following the new directions, Ola should withdraw the charges on its in-car entertainment system, Ola Play.

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