Is it stupid to end surge pricing by Ola and Uber in India?

The business models of major online taxi aggregators may be headed for a test in India.

 On April 6, the southern Indian state of Karnataka announced a ban on surge pricing—the practice of raising fares when demand for taxis is higher than supply. The new law said that online cab-hailing services such as Ola and Uber cannot charge more than Rs19.50 per kilometer for an air-conditioned taxi and Rs14.50 for a non air-conditioned one in the state.

What Ola cabs is doing to keep its competitors at bay

The  list of those betting on the future of Ola, India’s largest taxi aggregator, keeps getting longer. After having mopped up close to $900 million from more than a dozen investors since 2011 when it was set up, Ola (formerly Ola Cabs) received $30 million from Didi Chuxing (formerly known as Didi Kuaidi), China’s largest taxi hailing service.

Ola’s Buy Signals Early Shakeout In The Taxi Segment

The country’s organised taxi industry has shown first signs of consolidation at a time when a majority of companies in the segment are losing money.

Ola’s Buy Signals Early Shakeout In The Taxi Segment

The country’s organised taxi industry has shown first signs of consolidation at a time when a majority of companies in the segment are losing money.

Dated laws, policy grey areas worry e-commerce players

Amazon, Uber recently expressed concern over lack of clarity in regulation. E-commerce players such as Amazon and Uber feel that dated laws and lack of clarity in regulations are the biggest risk for their India operations.