Government warns online cab apps after rise in consumer complaints

On 11th May 2022 (Tuesday), the Consumer Affairs Ministry warned online cab aggregators of strict action if they fail to address the rising complaints against their unfair trade practices for putting additional charges such as COVID-19 charges, insurance and cancellation charges without explicit consent of the riders. Another interesting fact that has come to light is that 30% of the ride cancellations happen because the drivers force the riders to do so.

Based on the data of National Consumer Helpline, it has also been ascertained that slapping unauthorized charges and non-refund of paid amount are two other important consumer grievances with regard to these cab services. Union Consumer Affairs Secretary Rohit Kumar Singh in a meeting with Ola, Uber, Meru Cabs, Jugnoo and Rapido apprised them about the rising consumer complaints and discussed with them the statistics related to it.

The ministry has asked these online cab aggregators to improve their system and address consumer complaints, else the competent authority will take strict action against them. Speaking on this issue, Nidhi Khare, Chief Commissioner, Central Consumer Protection Authority (CCPA) has said that cab aggregators immediately need to swing into action and come up with solutions to resolve the issues raised by the customers.

The ministry has also raised concerns about the aggregators’ method to charge different fares for two persons for the same route, leading to customers paying arbitrary fares.