A 5-point lowdown on watchdog’s notices to Ola, Uber

Published on May 21, 2022 08:37 AM IST
Ola and Uber get CCPA notices: Consumers have complained about drivers cancelling trips, refusing to put on ACs and insisting on cash-only payments. 
On unfair trade practices charge against Ola, Uber, consumer-rights regulator a lack of any information on the algorithm or method used by the company to charge different fares for the same route from two individuals. (HT File Photo/Sonu Mehta)
On unfair trade practices charge against Ola, Uber, consumer-rights regulator a lack of any information on the algorithm or method used by the company to charge different fares for the same route from two individuals. (HT File Photo/Sonu Mehta)
By | Edited by Swati Bhasin

Ten days after the government held a meeting with cab aggregators - Ola and Uber - among others, notices were issued by consumer protection regulator CCPA on Friday to the ride-sharing giants. The ride-hailing platforms - Ola and Uber- have been accused of unfair practices and violation of consumer rights.

Here are five things you need to know:

1. “Deficiency in services” has been one of the top reasons behind the notices. "We have issued notices to both Ola and Uber. Most of the consumer complaints received in the last one year are related to the deficiency in services and other unfair trade practices," Central Consumer Protection Authority (CCPA) Chief Commissioner Nidhi Khare told news agency PTI.

2. Between April 1, 2021, and May 1, 2022, 2,482 grievances have been registered against Ola - and 54 per cent of these were linked to deficiency in services, while 770 grievances have been registered against Uber. Of these 64 per cent were ‘deficiency in services’ linked complaints.

3. "The amount of cancellation charge is not displayed prominently on the platform before booking the ride. Undue cancellation charges are borne by users when they are forced to cancel the ride due to unwillingness of the driver to accept the ride or come to the pick-up location," the watchdog said in a statement, adding that consumers have also complained about cab drivers refusing to put on AC and insisting on cash-only payments.

4. Just a day before, Uber had said in a statement that it had raised the fares “to cushion drivers from the impact of rising fuel prices across many cities in India”. It also said that the driver would now be able to see the destination and estimated fare of a ride - these have been said to be the top reasons behind the cancellations of trips, according to many, putting users through massive inconvenience while they are trying to book rides.

5. The May 10 meeting was attended by representatives from Ola, Uber, Meru, Jugnu and Rapido. "We told them about the rising consumer complaints against their platforms. We gave them the statistics also. We have asked them to improve their system and redress the consumer complaints otherwise the competent authority will take strict action," Consumer Affairs Secretary Rohit Kumar Singh had said after the meeting.

(With inputs from PTI)

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