Uber, Ola to offer rides to Indian government departments with no surge pricing

Uber and its Indian rival Ola could soon introduce unprecedented changes to lure government officials in India.

SEE ALSO: Taxi drivers hope to beat Uber with their own apps

Both the cab-ride hailing services have promised the government to offer cabs at a fixed monthly rate, PTI reports. These cab tariffs won’t be subjected to “surge pricing” through which Ola and Uber adjust the fare depending on cab demand, time of the day and other factors. 

"At  Uber, we are always looking at ways to reach out to our riders to  provide affordable, convenient and reliable rides, at the push of a  button. We work with various partners, including the Government, to  offer tailored solution for their employees to book a ride on Uber," an Uber spokesperson told Mashable India. 

"For this partnership, we have created a special view on the Uber app for the government employees. One can also book a ride via government e-marketplace  portal. We are excited to work with various government departments to  help leverage technology based innovative solutions for their needs," the spokesperson added.

As part of this, the cab companies have registered themselves on the government e-marketplace (GeM). The marketplace was launched by the government last month in an attempt to bring more transparency on expenditures.

“What has been agreed is that they will give a monthly bill to us, something they have never done. Second, for the government, there will be no surge pricing,” a government official told the news wire service. Uber and Ola are “economical and efficient and [...] you also get a complete tracking of distance and clear-cut billing,” the official added.

The idea is that once they are able to tap Uber and Ola, naturally other cab providers will cut short their fares as well to stay in the competition. This will ensure more savings for government employees.

Ironically, both Ola and Uber have been facing regulatory hurdles in many states of the country. The bone of contention in most cases is surge pricing and that the two ride hailing and cab aggregation services don't necessarily come under any existing taxi license. 

Ola, additionally, has also held talks with public sector units (PSUs) for similar ‘Corporate’ offerings, the company confirmed to Mashable India. The company hopes that this will would help it bring 100 of India's top companies on its platform.