Consumer Protection Authority Set To Grill Ola, Uber over Surge in Customer Complaints
As thousands of commuters find themselves at the mercy of Uber and Ola drivers via ride cancellations, cancellation charges, random surge pricing and long waiting times, the Central Consumer Protection Authority (CCPA) was set to grill cab aggregators over their algorithms on Tuesday.
 
The regulator, under its chief commissioner Nidhi Khare, was set to ask cab-hailing platforms to showcase their algorithms related to ride cancellations and surge pricing, along with questioning them over other issues.
 
The CCPA has received numerous complaints of unfair trading practices, such as cab drivers forcing riders to cancel trips that result in the customers paying the cancellation charge.
 
The Authority is of the view that old customers are being charged exorbitant rates while new riders are being wooed by low fares for the same distance.
 
Despite the Motor Vehicle Aggregator Guidelines 2020, 71% customers say that ride cancellation issues by drivers continue to, according to a survey by community-based social media platform LocalCircles last month.
 
Over 45% of app-based taxi consumers stated they were charged more than 1.5 times in surge pricing despite the threshold being set by the Motor Vehicle Aggregator Guidelines 2020.
 
The extortionist practices of some drivers to undertake private trips were reported by consumers as a major concern, the report said.
 
As thousands of Indian riders continue to suffer from paying cancellation fees sans their faults, the ride-hailing major 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 (ACCC).
 
Uber now faces US$26 (million) (Australian dollars) in penalties for adopting those illegal practices.
 
More than 2mn Australian consumers were shown the misleading cancellation warning.
 
Envisioned to lessen the travel woes, cab-hailing platforms like Uber and Ola have come a long distance in India, but riders are increasingly facing more issues.
 
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.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
MeitY’s Direction to VPN Companies to Share User Data or Face Jail Invites Concern Over Privacy
Sabah Gurmat (The Leaflet) 07 May 2022
The Ministry of Electronics & Information Technology (MeitY)  on April 28 issued directions to Virtual Private Network (VPN) provider companies to collect and share user data including IP addresses with it,  for a period of five...
Govt Panel Finds Defect in Battery Cells in Almost All EV Fires
IANS 06 May 2022
In what could put EV (electric vehicle) two-wheeler (2W) manufacturers in a tough spot, the preliminary findings from the government-constituted probe committee on EV fires have found issues with battery cells/design in nearly all...
Fraud Alert: Smishing and Rental Fraud Continue To Dupe People
Yogesh Sapkale, 06 May 2022
All over the world, SMS phishing attacks, now called 'smishing' are on the rise. While SMSs claiming to originate with a bank are the most tried and tested ploy of fraudsters in India, they are also using such expressions as 'Fedex...
Indian Consumer Brands Set To Hike Prices by 5%-7% amid Shipments Delays
IANS 06 May 2022
Consumer electronics manufacturers on Thursday said that due to hike in raw materials costs and shipment delays amid lock-downs in China, they have no option but to increase prices of consumer goods by 5-7 per cent soon for the...
Free Helpline
Legal Credit
Feedback