RSS affiliate wants to curb surge pricing of Uber, Ola

New Delhi:  Swadeshi Jagaran Manch, a key RSS affiliate, has declared war on 'surge pricing' by cab aggregators like Uber and Ola.

In a letter to Nitin Gadkari, Minister of Road Transport & Highways, the SJM has demanded regulation of surge pricing limits for taxi aggregators under Motor Vehicles Act 2019.

SJM's Ashwini Mahajan wrote, "It has been observed that the taxi aggregators, Uber and Ola who started activities in India in 2014-15 to provide lower cost and convenient taxi services, have started profiteering under the ambit of surge pricing. Just in the last two weeks, we received screen shots where a fare of Rs 2,000 was quoted in Mumbai for a 6-minute ride. This is outrageous and plain profiteering by these platforms."

Citing a recently released public survey, Mahajan claimed that consumers from across the country are facing "issues" with app-based taxi services like Uber and Ola.

Quoting from the survey, he claimed people want surge pricing to be capped at not higher than 25 per cent across the country. He also demanded, in case of ride cancellation by the taxi app company or the driver, Rs 100 or an amount equivalent to 20 per cent of the fare should be credited in the customer's account as a penalty.

He also raised objection against surge pricing on advance or scheduled bookings.

"It is our request that the taxi aggregator rules under Motor Vehicles Act 2019 are made keeping the above public interest in mind. If that is not done, it would be an unpopular move and we may risk the states coming up with their own rules and setting lower limits of surge pricing for taxi aggregators", warned Mahajan.

A copy of the letter is also marked to the Prime Minister and Finance Minister. Swadeshi Jagaran Manch has questioned and even protested many government policies in the past and yet continues to enjoy confidence of the RSS.

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