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The Government has given a month’s notice to cab aggregators like Ola and Uber to comply with its surge pricing and driver cancellation mandates, failing which they could face penal action. Further, the Central Consumer Protection Authority (CCPA) will bring in a draft advisory to regulate online cab aggregators. 

The Consumer affairs ministry, which called the representatives from ride-hailing platforms such as Ola, Uber, Meru, Rapido, and Jugnu, sent out this warning. They have also been asked to become convergence partners in the National Consumer Helpline (NCH) for better consumer grievance redressal and compliance with Consumer Protection Act, 2019 and E-commerce rules, 2020.  

According to PTI News, Consumer affairs secretary Rohit Kumar Singh said, “We told them about the rising consumer complaints against their platform and have given them statistics too. We have asked them to improve their system to redress consumer complaints, or else face strict action from a competent authority.” 

Complaints have been pouring in against cab aggregators, alleging unfair trade practices. Prominent among them is the ride cancellation policy. Drivers seemingly compel customers to cancel their trips despite accepting cab bookings. But unfortunately, it is the consumer who pays for the cancellation. 

The NCH data says, 56 percent of complaints received against aggregators between Apr 1 – May 1, 22, were for ‘deficiency of 

services.’ The Motor Vehicle Aggregator guidelines show a cap on surge pricing—1.5 times more than the basic fare. Likewise, the penalty on drivers is 10 percent of the fare (not more than Rs.100). However, only a few states have enforced these guidelines.  

TNV opinion: Online cab aggregators offer convenience to customers. However, surge pricing and ride cancellation issues are a pain in the neck, often resented and forgotten. Let us hope that the draft advisory from CCPA and the Government’s stern warning will check these arbitrary practices.