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Why is CCPA issuing notices to ride-hailing platforms?

The notice paints the scale of problems users face on such apps.

The Central Consumer Protection Authority (CCPA) issued notices to India’s two most prominent ride-hailing platforms— Ola and Uber— over allegations of unfair trade practices and violation of consumer rights, as per a government press release. As many as 2,482 and 770 complaints were registered by consumers from all over the country against Ola and Uber respectively between April 1, 2021, and May 1, 2022, according to data from the National Consumer Helpline (NCH). The government also provided a break-up of the nature of grievances, showing that most of them were listed under the ‘Deficiency in Services’ category. It includes issues such as: Lack of response from customer support Driver’s refusal to accept online payment and insistence upon cash Charge of a higher fee despite operating on the same route previously at a lower cost Unprofessional driver behaviour Driver’s refusal to switch on AC despite the companies’ promise of an AC ride Recently, cab aggregators have come under fire for a deteriorating quality of service which drivers say is on account of the rising fuel prices and stagnant fares. The notice indicates that things have come to a head where government intervention is necessitated; it may also lead to a marginal improvement in the resolution of these consumer grievances. What are the issues raised in the CCPA notice? The companies have been asked to respond to these notices within 15 days, according to a PTI report. The government underscored some of the issues raised in its notice: Gaps in grievance redressal: Ride-hailing platforms…

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I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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