Ride hailing service Uber has reportedly agreed to limit the use of its hated surge pricing in Delhi and will honour official rates set by the state government.
The Delhi government banned services like Uber and Ola from imposing surge pricing during the city’s anti congestion trial which limited the number of vehicles on the road, based on odd and even number plates on alternate days.
Uber had halted surge pricing until the end of April but recently reintroduced it.
However the company has now bowed to government pressure.
"With prejudice to all our rights and contentions, we would like to humbly submit that the fare charged per kilometre on the Uber platform within Delhi will not exceed the government-prescribed fare applicable in Delhi," said Gagan Bhatia, Uber general manager, India North.
This effectively means there will be an upper limit cap on the surge price it can charge.
Uber’s biggest rival in India Ola said it has already stopped surge pricing altogether.
