02/05/2016 11:14 AM IST | Updated 15/07/2016 8:26 AM IST

Uber Brings Back Surge Pricing Despite Kejriwal's Vow To End Fare Hike

Anindito Mukherjee / Reuters
An employee walks at the office of ride-hailing service Uber in Gurugram, previously known as Gurgaon, on the outskirts of New Delhi, India, April 19, 2016. REUTERS/Anindito Mukherjee

NEW DELHI -- Despite Delhi Chief Minister Arvind Kejriwal's vow to end surge pricing in the national capital, Uber started charging higher fares after the Odd-Even scheme ended on April 30.

On Sunday evening, Kejriwal warned of "strong action" against cabs who have "started charging surge."

Following a public outcry after surge pricing went up to five times the regular fare during the second cycle of the Odd-Even scheme, when cabs were in huge demand, Kejriwal warned that cabs charging higher fares would be impounded and permits would be canceled.

After Kejriwal's warning, Ola and Uber, which are popular app-based taxi service providers in Delhi, suspended surge pricing for the duration of the 15-day Odd-Even scheme, which allowed odd and even numbered cars to run on alternate days.

Then, Kejriwal said that the ban on surge pricing would extend beyond the Odd-Even scheme. On May 1, however, Uber initiated surge pricing once again.

While Kejriwal has described "surge pricing" as "daylight robbery," Uber has said that enough drivers won't be available if prices are not increased during peak hours.

While Kejriwal has said that not making cabs available is "blackmailing," Uber has said that it does not employ the cab drivers, but only aggregates them.

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