Centre's notice to Ola, Uber over rising complaints seeks reply in 15 days
India Today
The consumer protection regulator issued notices to cab aggregators over unfair trade practices and violation of consumer rights. The companies have 15 days to respond.
The Centre has pulled up ride-sharing services Ola and Uber and asked them to put their house in order, amid rising complaints from consumers over rising fares, drivers denying air-conditioning inside cabs, rude behavior and rampant cancellations.
The consumer protection regulator, Central Consumer Protection Authority, or CCPA, has issued notices to the cab aggregators for unfair trade practices and violation of consumer rights. The authorities have given the companies 15 days to respond to the notice.
A lack of a proper consumer grievance redressal mechanism, shortfall in services, unreasonable cancellation charges and the fairness of the algorithm used to charge fares are among the major issues raised by the CCPA.
The notices were sent after the CCPA met with the cab aggregators on May 10. This was the second meeting that was called by the consumer affairs ministry after rampant complaints from commuters. The meeting was attended by representatives of Ola, Uber, Meru, Rapido, and Jugnu.
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The government told cab aggregators that complaints against them included spikes in cab fares, drivers refusing to turn on the AC, cancellations and drivers asking for cash.
The government warned of strict action unless companies improve their systems and redress the rising complaints.
