Jugnoo suspends surge pricing for the second phase of Odd-Even rule

Following Ola and Uber, the on-demand auto aggregator Jugnoo has also discontinued surge pricing in Delhi. This has come after the government gave orders to stop its practice amidst the ongoing second phase of the odd-even scheme.

"Surge pricing is a standard practice across different industries and it is no different with app-based transport aggregators," says Samar Singla, founder and CEO Jugnoo. "However, we came to this decision following the general commotion ensued by the transport aggregator ecosystem," he says.

Singla added how surcharging is based on the fundamental demand and supply concept of economics, and it’s purely up to consumers if they want to pay more for a service or not, in case of high demand.

"This also helps in prioritizing travel, which means that only people who really need the service will use it by paying a higher price and the rest will find other ways of commuting," he adds.

"Surcharge is part of any business model and permanently banning it will negatively impact these companies," says Singla.

In support of the government’s odd-even scheme to tackle pollution and traffic, Jugnoo had added 1000 more autos to its existing fleet.

Image source