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. The move comes after a spate of accidents involving Uber and Ola cabs that have led to several deaths this year. According to the official notification, the only surcharge allowed for cabs is between 11pm and 5am, during which they are allowed to charge 1.5 times the regular fare. 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.
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. The move comes after a spate of accidents involving Uber and Ola cabs that have led to several deaths this year. 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.