Uber charged ₹1,334 for 8.83 km ride, fined ₹20,000 by consumer court

Uber India said that the upfront fare shown to the rider was ₹359. However, the final fare came to be ₹1334 due to multiple route deviations.

The District Consumer Disputes Redressal Commission of Chandigarh has imposed a penalty of ₹20,000 on Uber India. The Commission asked Uber India to pay ₹10,000 in compensation to a customer named Ashwani Prashar and ₹10,0000 to be deposited in the legal aid account.

The District Consumer Disputes Redressal Commission of Chandigarh has asked Uber India to pay ₹10,000 in compensation to a customer named Ashwani Prashar. (Reuters)

The customer had raised a complaint after paying Uber ₹1,334 for an 8.83 km ride, reported The Indian Express.

In his complaint, Chandigarh resident Prashar said that he took a cab using ride-hailing app Uber on August 6, 2021. He alleged that the 8.83-km long ride lasted just 15 minutes from 10.40 pm to 10.57 pm but he was charged ₹1,334, which comes to around ₹150 per km. Prashar had filed the complaint after his several chats and emails to Uber seeking redressal of his grievance went in vain.

What Uber India said in its defence

In its reply, Uber India said that the upfront fare shown to the rider was ₹359. However, the final fare came to be ₹1334 due to multiple route deviations during the course of the journey from AG Colony, Audit Phool Colony, Sector 41-B, Chandigarh to Sector 48-B, Chandigarh.

Uber India stated that it is unable to determine if the said deviations were rider/ complainant- or driver-induced. The company argued that in either case, it cannot be held liable for any deviation in route due to the rider/complainant or the driver. The company also stated that it acts merely as an intermediary between the rider and the driver and is not party to any agreement between them regarding the route taken for any journey.

The company highlighted that as a goodwill gesture and to maintain the rider's faith in the reliability of the platform, they refunded Uber Credits worth ₹975 to the complainant’s Uber account as it was a cash trip.

What the Disputes Redressal Commission said

While judging the matter in the favour of the complainant, the Disputes Redressal Commission termed the matter "unfair trade practice".

It said, “practice of charging excess fare than that of actual contracted fare at the time of advance booking, is unfair trade practice, which needs be deprecated and as such complainant is entitled for compensation for mental agony and harassment and also to litigation expenses. In order to keep check on such unruly service providers, who commit breach of assurances, promises and commitments at the nick of time, they are required to be dealt with heavy hands and as such OPs must be made to deposit at least ₹10,000 as compensation in Consumer Welfare Fund of this Forum, in addition to the amounts payable to complainant as compensation and litigation expenses.”