How the rates are calculated by these travels companies is not known. I used ola taxi long back and for the last two years, I have not used the same.
The difference you are showing is very high. Sometimes if 2 or 3 people are trying from the same locality for a cab We noticed that there will be an increase in the rate. It is very correct that the company should not exploit the situation and the rates should be fixed on per kilometre rate.
As I was in a hurry so I just booked the other cab but as a customer, I felt so much cheated and decided not to go for ola in the future rather with uber. Although the next cab I booked had a decent driver and he told me under how much obligation does these drivers work to accept the ride, but he agreed that in my case the driver was at fault and should never have accepted the ride if he was not nearby.
And this policy of ola on cancellation often seems to be misused a lot by companies since the ride takes a long time to arrive whenever the customer is in a hurry he often cancels the ride. They should not accept the ride if they are not nearby as shown on the map at least the customer will not have a false assumption of waiting for their ride.
"It is hardest thing in the world to be good thinker without being a good self examiner"
K Mohan @ Moga
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
Most of the times people will be moving in peak hours and will be paying higher amount of money and other thing is that sometimes driver will not be able to come and will ask us to cancel it in that case we should not cancel it but we should ask the driver to cancel it or if he says that he cannot cancel then while cancelling we should mention that it was cancelled because driver could not come or did not take up this job so that we should not be penalized.
Knowledge is power.