Last Saturday I used app based cab service OLA for coming back from New Delhi Railway Station to my home at Indirapuram, Ghazibad.
Let me talk about various charges of cab:
Base fare: This is added to fare irrespective of number of kilometers run. This is to cover for expanses incurred by driver to reach at pickup location. I don't have any problem with this fare because it helps in keeping per kilometer charges low. If we don't allow this charge then it will be factored in per kilometer charges which will be bad for long distance travelers.
Per Kilometer charges: This is the charge for basic service.
Per minute charge: This is charged per minute for the travel duration. This charge is to cover for extra fuel consumed by cab because of traffic jams and slow moving traffic and driver's pay for time wasted in traffic jams. I don't have any problem with this charge also.
I was charged 50% extra fare for peek charges. This peek charges increases with demand. The mobile app of OLA disclosed the revised rate card before I booked the cab so no problem there. But the problem is with fact that price are increasing with demand. So cab companies are making extra profit by exploiting passenger in need and not by increasing supply to meet the demand. Cab companies will not be interested in increasing supply if they can charge passenger extra by decreasing the supply. There have to be a cap at maximum fare which can be charged by cabs. I don't have any problem with off hours discount being offered by cab companies. But maximum fare need to be regulated to force cab companies to increase supply to make more profit instead of exploiting passengers.
Let me talk about various charges of cab:
Base fare: This is added to fare irrespective of number of kilometers run. This is to cover for expanses incurred by driver to reach at pickup location. I don't have any problem with this fare because it helps in keeping per kilometer charges low. If we don't allow this charge then it will be factored in per kilometer charges which will be bad for long distance travelers.
Per Kilometer charges: This is the charge for basic service.
Per minute charge: This is charged per minute for the travel duration. This charge is to cover for extra fuel consumed by cab because of traffic jams and slow moving traffic and driver's pay for time wasted in traffic jams. I don't have any problem with this charge also.
I was charged 50% extra fare for peek charges. This peek charges increases with demand. The mobile app of OLA disclosed the revised rate card before I booked the cab so no problem there. But the problem is with fact that price are increasing with demand. So cab companies are making extra profit by exploiting passenger in need and not by increasing supply to meet the demand. Cab companies will not be interested in increasing supply if they can charge passenger extra by decreasing the supply. There have to be a cap at maximum fare which can be charged by cabs. I don't have any problem with off hours discount being offered by cab companies. But maximum fare need to be regulated to force cab companies to increase supply to make more profit instead of exploiting passengers.
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