Ola, Uber get notices for alleged consumer rights breach, unfair practices

Improper grievance redress mechanism, poor service, hefty cancellation charges and fairness of algorithm used to charge fares among major issues raised

The Central Consumer Protection Authority (CCPA) on Friday said that it has issued notices to Ola and Uber, the two online ride-hailing platforms for unfair trade practices and violation of consumer rights.  

“As per the data from the National Consumer Helpline (NCH), from 01.04.2021 to 01.05.2022, 2,482 grievances were registered by consumers against Ola and 770 grievances were registered against Uber,” said the CCPA.

Last week, the Department in a meeting with ride-hailing companies Ola, Uber, Rapido, Meru Cabs and Jugnoo directed them to become convergence partner in the National Consumer Helpline, to enable better grievance redressal for consumers and also comply with Consumer Protection Act, 2019 and e-commerce rules.

In terms of nature of grievances, 1340 (54 per cent) dockets were registered against SoftBank-backed Ola were about  ‘deficiency in services’.  521 (21 per cent) dockets registered were about ‘paid amount not refunded’. Other nature of grievances were related to unauthorised charges, overcharging and promised ‘gift not given’.

For Uber India,  473  (61 per cent) dockets related to ‘deficiency in services’ were registered. 105 (14 per cent) dockets registered were about ‘paid amount not refunded.’Other nature of grievances were related to unauthorised charges, overcharging and promised ‘gift not given.

CCPA said the primary issues raised in the notices included ‘deficiency in service’. This includes lack of proper response from customer support, driver refusing to take payment by online mode and insisting for cash only. It also includes a higher amount charged despite going on the same route previously at a lesser charge, unprofessional driver behaviour and driver refusing to switch on AC when the consumer is promised AC ride on the app.

It said there is an inadequate consumer grievance redressal mechanism in absence of both ‘customer care number’ and details of the ‘grievance officer’ as required to be mentioned on the platform. There is an unreasonable levy of cancellation charge wherein users are not shown the amount of time within which cancelling a ride is permitted. 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 the unwillingness of the driver to accept the ride or come at the pick-up location

CCPA said the other issue is that there is 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. Inclusion of charges for add-on services by pre-ticked boxes for including add-on services without obtaining consent by explicit and affirmative action before each ride.

“It may be mentioned that a significant number of complaints have been lodged by consumers across the country on multiple issues which affect their rides booked through both the ride-hailing platforms, said CCPA. “We are regularly monitoring the consumer protection landscape in the country.”

An email query to  Ola and Uber remained unanswered till the time of going to press.

In an interview this week, Nitish Bhushan, head of central operations, Uber India and South Asia, said the ride-hailing company has come up with various innovations for improving the experience for drivers and riders in India. These address concerns ranging from earnings in the wake of higher fuel prices to long-distance pick-ups and payment schedules. Other issues that the new features aim to address include riders complaining about drivers cancelling trips or not wanting to switch on the AC.

Over the past few weeks, Dara Khosrowshahi-led Uber said it has raised fares to cushion drivers from the impact of rising fuel prices across many cities in India. The other issue is the driver calling the customers, asking them about the destination and then cancelling the trip. Bhushan said Uber is now showing trip destinations to drivers before they decide to accept a ride. The firm is now also showing drivers the mode of payment (cash or online) before the trip starts and making efforts to ensure AC rides.