The business models of major online taxi aggregators may be headed for a test in India.
“Who knows how these companies are arriving at surge pricing? They need to tell the government clearly about the mechanics behind how surge pricing is calculated on their platforms,” said Sanchit Vir Gogia, chief analyst at research and advisory firm, Greyhound Research. “How do we know if their practices are fair and true?”
The Karnataka government’s decision, Gogia added, will help “establish a strong foundation for ride-hailing businesses in the long run.”