Uber Ola drivers are not happy with surge pricing

Surprisingly, even Uber Ola drivers who stand to benefit from the taxi hailing apps’ surge pricing system are not happy with it. Economic Times says that it had interviewed dozens of drivers who operate under these two leading taxi aggregators and the majority of them are happy see that system banned in Delhi.

The surge pricing which seeks to balance out the demand-supply gap charges passengers anywhere between 1.5 times to 8 times the normal price if the demand outstrips cab supply in a particular zone at any given time of the day. Once more cabs flow into to meet the demand, the pricing structure gradually comes back to normalcy.

The taxi drivers say that customers refrain from hiring a cab when the prices surge and this results in reduced income.

Delhi and Karnataka have banned surge pricing after social media uproars while Maharashtra is contemplating a similar move. According to drivers, surge pricing discourages customers from hailing the taxi and they end up having less number of trips than expected. Most drivers seem to agree that fixed rates at all times would lead to consistent and predictable monthly earnings since the payment system is a function of the number of trips undertaken by the cabbie per day.

The surge pricing is already banned in Delhi and Karnataka. Maharashtra may soon join join the list.

Also read – Teenagers kill Uber driver in Delhi

We expect more states to come up with stringent laws to govern the rapidly growing taxi aggregator industry.

Via – Economictimes.Indiatimes.com

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