18/04/2016 5:12 PM IST | Updated 15/07/2016 8:26 AM IST

Uber And Ola Suspend Surge Pricing After Kejriwal Warns Of Strict Action

Anindito Mukherjee / Reuters
An employee works inside the office of U.S. online cab-hailing company Uber, on the outskirts of New Delhi, India, April 24, 2015. REUTERS/Anindito Mukherjee

Update: Shortly after Uber, Ola also suspended "peak pricing." "We've temporarily pulled out Peak Pricing in Delhi, in support of Govt's #OddEven initiative. Travel at 1x fares & make #OddEven a success," Ola tweeted on Monday evening.

NEW DELHI -- A day after Delhi Chief Minister Arvind Kejriwal warned of "strict action" against two leading app-based cab service providers for hiking prices when demand is high, Uber announced that it was "suspending surge with immediate effect" in the national capital.

The demand for cabs has escalated since the Odd-Even rule came into force in the national capital on April 15. This rule, which allows odd and even numbered cars to run on Delhi roads on alternate days, will be enforced till April 30.

Over the past few days, people have complained of price surges from Ola and Uber, which are three to four times the regular fare. Widely regarded as mean-spirited and exploitative, these fare hikes were burning holes into the pockets of many residents.

Not only were people worried about paying these excessive fares for the remaining period of this Odd-Even cycle, but every time this rule is enforced in the city.

On Sunday, Kejriwal said that his government would take "strong action" against Uber and Ola.

Today, the Aam Aadmi Party chief said that cabs, which are charging more than government prescribed rates, would face "strict action including permit cancellation and impounding."

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