Delhi government cracks whip on Ola, Uber, impounds 18 cabs

NEW DELHI: Cracking its whip against app- based taxi services, Delhi government has impounded 18 cabs of Ola and Uber for charging fares more than the prescribed rates during the odd-even car rationing period.

A senior government official said the cabs were impounded last evening after an order was issued to the Transport Department to take strict action against such companies in the face of mounting criticism for manifold increase in fares.

"We impounded 18 cabs of Ola and Uber last evening after receiving complaints of overcharging from commuters. Most of the cabs belong to Uber," the official said.

Ola and Uber yesterday suspended 'surge pricing' after Chief Minister Arvind Kejriwal ordered strict action, including permit cancellation and impounding against overcharging by taxis.

Surge pricing is a technique used by Uber and Ola to raise fares to provide drivers the incentive of keeping their cab running while also making it available for the user irrespective of the demand.