18 cabs of Ola and Uber impounded for charging more than prescribed limit

Zee Media Bureau

New Delhi: Delhi Transport Department impounded 18 cabs of Ola and Uber on Tuesday for charging more than prescribed limit.

Demand for taxis has increased as the Delhi state government, trying to reduce pollution, introduced an `odd-even` scheme to ration car usage based on their registration numbers owing to which cab companies like Uber and Ola had started charging customers under `surge pricing`.

However,  the companies temporarily suspended `surge pricing` after the state government threatened to cancel permits and impound vehicles of its drivers.

Surge pricing is the term for when demand for taxis outstrips supply, resulting in Uber charging higher rates than normal to encourage more drivers to offer rides.