8,740 Complaints Received Against Cab Aggregators In 2.5 Years: Govt

Over 8,700 Complaints Received Against Cab Aggregators In 2.5 Years: Govt

SUMMARY

A majority of the complaints pertained to deficiency in services, inadequate consumer grievance redressal mechanism, cancellation by drivers, among others

The government said that notices have already been issued to two major online ride hailing platforms over violation of consumer rights and unfair trade practices

In May, the government had pulled up ride-hailing companies over their failure to address rising consumer complaints and warned of strict action unless they improve their system

The National Consumer Helpline registered 8,740 complaints against cab aggregators in the last two-and-a-half years, the government informed the Parliament on Wednesday (July 20).

A majority of the complaints pertained to deficiency in services, inadequate consumer grievance redressal mechanism, cancellation by drivers, among others.

This was stated by Minister of State for Consumer Affairs, Food and Public Distribution Ashwini Kumar Choubey in response to a query by MPs Sangeeta Kumari Singh Deo and Jayanta Kumar Roy.

The minister added that notices have already been issued to two major online ride hailing platforms over violation of consumer rights and unfair trade practices. The MoS was referring to Uber and Ola that have faced the ire of government action.

Choubey also said that all ride-hailing companies are mandated under the Consumer Protection (Ecommerce) Rules, 2020 to establish a consumer grievance redressal mechanism and appoint a grievance officer to address issues.

He said laws mandate displaying the name, contact details and designation of such contact persons on the platform, adding that it is imperative for companies to address the issues within a month of the receipt of the complaint.

Earlier in May, the government pulled up ride-hailing companies over their failure to address rising consumer complaints and warned of strict action unless they improve their system.

There has been a surge in complaints against the cab aggregators in recent times. In April, some users claimed that Ola and Uber drivers were charging customers for AC during summer over fuel price hike and low commissions.

The online four-wheeler taxi booking segment in the country is largely dominated by Ola and Uber.

According to a report, the online taxi services market in India was valued at INR 29.75 Bn in FY19 and is expected to grow to INR 61.59 Bn by 2024 at a compound annual growth rate (CAGR) of 16.60%.