Unfair Trade Practice: Govt Grills Uber, Ola Over Consumers' Complaints

The CCPA called a meeting with the online cab platforms to discuss issues related ride cancellations, cancellation charges, random surge pricing, and long waiting times

The CCPA, a department under the consumer affairs ministry, is likely to lay down SOPs on addressing consumer grievances on Uber and Ola with set timelines. Image: Getty

Source : Getty

New Delhi: The Central Consumer Protection Authority (CCPA) on Tuesday quizzed online cab aggregators – Uber, Ola, Meru, and Jugnoo – to explain details on operations, ride cancellations, fare pricing algorithm, and drivers’ payments structure, according to a report by CNBC-TV18.

The CCPA called a meeting with the online cab platforms to discuss issues related ride cancellations, cancellation charges, random surge pricing, and long waiting times as thousands of commuters find themselves at the mercy of Uber and Ola, IANS reported.

Regarding unfair trading practices, the CCPA has received numerous complaints from riders, such as cab drivers forcing customers to cancel trips that result in the consumers paying the cancellation charge.

In the meeting with CCPA, the cab aggregators will discuss the issues in length and breadth and will formulate fresh guidelines to protect customers.

According to the report, the new guidelines will be in addition to the already existing protocols issued by central and state transport departments. The CCPA, a department under the consumer affairs ministry, is likely to lay down standard operating procedures (SOPs) on addressing consumer grievances with set timelines.

The ministry had called the meeting after taking cognisance of complaints, primarily against Uber and Ola.

The commuters have lodged complaints against the aggregators for spike in cab fares and switching off ACs in vehicles. Most of the time, Uber and Ola drivers ask the riders to reveal what fare the Uber app is showing, and then decide if they want to take the ride or not depending on the amount and if it is in cash, forcing the riders to cancel the ride.

The government is also looking into how accurate and reasonable the fares charged are according to the destination as well as the cancellation charges.

Last month, commuters in Delhi mostly faced difficulties as several cab and auto drivers had called a strike to protest against the rising fuel prices.

As thousands of Indian riders continue to suffer from paying cancellation fees without their faults, Uber in Australia admitted that it made false or misleading statements in cancellation warning messages and taxi fare estimates, according to the Australian Competition and Consumer Commission.

Uber now faces $26 million (Australian dollars) in penalties for adopting those illegal practices.