No surge pricing today in Mumbai as city’s auto drivers go on strike, says Uber

MUMBAI: Taxi hailing app Uber will disable the surge pricing option on its cab network in Mumbai for a 24-hour period on June 17, as the city’s auto drivers go on strike demanding the closure of online cab services.

The move comes after cab operators in Mumbai called for a strike on Monday to protest against the services of taxi app companies like Uber, Ola and Taxi-ForSure.

The shortage of taxis couple with rains in the financial capital resulted in fares surging up nearly five-fold on the Uber network. Passengers trying to book cabs took to social media to vent their frustration. Rival taxi app network Ola also saw high surge pricing on Monday.

"However, no dynamic pricing means that the availability of cars will be affected, due to the increased demand. You may have to try a few times to get a ride successfully...Our partner drivers are enthusiastic in their support of our efforts to make sure that Mumbaikars keep moving," said Uber in an email to its customers.

Called ‘surge pricing’, the dynamic pricing model is anchored in one of the fundamental tenets of economics — demand and supply — and has left drivers happy and consumers with mixed feelings. Bengaluru’s transport authority cracked down on Ola for surge pricing earlier this year.