Ola, Uber Pulled Up By Govt Amid Complaints Of Surge Pricing, Cancellation Fees: What We Know

If you are someone who used app-based cabs frequently, you know very well how irritating it is for the booking to get cancelled and then you are made to pay cancellation fees.

Cab-aggregators like Ola and Uber defend the cancellation fees arguing that it is 'to compensate the expenses incurred by the driver', even if it is he who cancelled it or asked the passenger to cancel the ride.

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Now the government seems to have taken note of this and more 'questionable' practices by the likes of Ola and Uber.

Flooded with complaints

The Central Consumer Protection Authority (CCPA) Chief Commissioner has called a meeting of ride-hailing platforms like Ola and Uber next week for seeking details about their policies related to pricing and cancellation of rides.

"We have received several complaints from consumers regarding the cancellation and pricing policy of cab aggregators. The number of complaints are very high and therefore we have called the cab aggregators for explanation of their policies," Central Consumer Protection Authority (CCPA) Chief Commissioner Nidhi Khare told PTI.

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Citing a few examples, Khare said the regulator has received many complaints of alleged unfair trade practices, including cab drivers forcing consumers to cancel a trip and bear a penalty as the drivers do not want to accept the ride for whatever reason.

The consumer protection regulator has also reportedly received a lot of complaints about the drivers refusing to turn on the AC or demanding extra payment for it, citing the recent fuel hikes.

Algorithm setting fare?

Another practice of app-based cab-aggregators that has come under the lens is the use of algorithms to set the ride fare.

It was reportedly found that someone travelling between two destinations on a regular basis is charged higher than someone who rides between the same points for the first time.

Khare further said existing consumers are being charged high rates for a ride, while new users are lured with lower charges for the same distance.

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"It appears that the cab aggregators are using algorithms to lure new customers, putting old customers at disadvantage. This is unfair practice," she added.

Ola, Uber rides get expensive

Recently, both Ola and Uber had hiked the travel fares in most key cities including Delhi, Mumbai and Bengaluru citing the increase in fuel prices.

¡°We listen to feedback from drivers and understand that the current rise in fuel prices is causing concern. Over the coming weeks, we will continue to track fuel price movements and take further steps as needed,¡± Nitish Bhushan, head of central operations, Uber India and South Asia, had said in a statement.

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