Authorities in the south Indian state of Karnataka are weighing plans to restrict ride - hailing apps from using the controversial surge pricing system , which the companies often defend as they claim it helps attract drivers to busy areas , thus reducing customer wait times . While the move is seen as an attempt to provide an equal opportunity for all cab companies , it is bound to hit the revenues of Uber and Ola most if it is enforced , as traditional cab firms do not use the system . The state is of the opinion that ride - charging apps should not have the discretion to charge fares at a higher rate than regular licensed cab operators , who follow the fare ##s officially announced by the transport department .
Authorities in the south Indian state of Karnataka are weighing plans to restrict ride-hailing apps from using the controversial surge pricing system, which the companies often defend as they claim it helps attract drivers to busy areas, thus reducing customer wait times. While the move is seen as an attempt to provide an equal opportunity for all cab operators, it is bound to hit the revenues of Uber and Ola most if it is enforced, as traditional cab firms do not use the system. The state is of the view that ride-hailing apps should not have the discretion to charge fares at a higher rate than regular licensed taxi operators, who follow the fare chart officially announced by the transport department.