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‘Surge’ in Uber’s conflict with government

Uber’s Mumbai GM Shailesh Sawlani (in white) and others hold boxes containing over 1 lakh petitions, which they handed over to the transport commissioner’s office at Bandra (east) on Friday. (Photo: Mrugesh Bandiwadekar)

Uber’s Mumbai GM Shailesh Sawlani (in white) and others hold boxes containing over 1 lakh petitions, which they handed over to the transport commissioner’s office at Bandra (east) on Friday. (Photo: Mrugesh Bandiwadekar)

Private taxi aggregator Uber has refused to yield to the state government’s suggestion of placing a cap on ‘surge pricing’ — increase in fare during peak-hour traffic — and banning vehicles with engines below 1,400 cc on the grounds that they are not eco-friendly or energy-efficient. Uber has submitted its “suggestions and objections” on the two proposals that are part of the draft Maharashtra City Taxi Rules 2016 to the transport commissioner’s office on Friday.

Uber’s Mumbai general manager Shailesh Sawlani walked to the transport commissioner’s office in Bandra (east) and submitted the letter and petitions of more than 1 lakh passengers in some eight boxes in support of the taxi aggregator.

Mr Sawalani said, “The government wants to fix a minimum and maximum fare, but is yet to say what that will be. Secondly, it seems they do not want to provide economical or low-fare service to the people. Also, only six to seven per cent of our riders have used the surge pricing on an average in a month while the remaining have paid the average fare.”

The draft also stated that none of the aggregators can have more than 50 per cent of its vehicles below the engine power of 1,400 cc’s as they are less eco-friendly. However, most of the vehicles do not meet this parameter as they are costlier for the driver/owner to fund. The draft also states that if someone owns a vehicle below 1,400 cc they will have to pay a permit price of Rs 2.6 lakh. This in turn will affect the fares as all the aggregators will try to recover this money by increasing the fares. So indirectly, the fares will see a surge and the commuters will have to pay the increased fare.”

Uber is the most used taxi aggregator in the city. Transport officials within the state have said the draft was prepared keeping in mind that local taxis had become obsolete in China and Hong Kong owing to cab aggregators.

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