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Government warns cab aggregators to fix customer complaints or face penal action

The government has directed cab aggregators to safeguard customers’ interests and establish a procedure for resolving complaints and other issues. The Ministry of Consumer Affairs has urged all App-based cab aggregators to address concerns such as car hygiene, poor service, quick refusals, and driver training during a meeting held today under the supervision of Secretary Rohit Kumar Singh.

Additional Secretary Nidhi Khare outlined the primary challenges that customers face while using these platforms to obtain services. During the discussion, the National Consumer Helpline (NCH) emphasised the major types of consumer issues. According to NCH data, service deficiencies accounted for 56 percent of all complaints between April 1, 2021, and May 1, 2022.

Cab aggregators have been handed orders to immediately cease the claimed Unfair Trade Practice, failing which a penalty would be applied.

This conference was attended by all cab aggregators, including Ola, Uber, Meru, and Jugnu. The government also used the aggregators’ feedback on several elements of their operations.

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The government not only solicited the aggregators’ feedback on all of the concerns, but also informed them of other grievances. The firms claimed to have a comprehensive procedure for resolving consumer complaints during the meeting. They did say, however, that any concerns mentioned at the discussion will be taken into account. They explained that the cancellation fees are imposed to compensate the drivers for their efforts in delivering the transaction.

To provide improved grievance resolution for customers and compliance with the Consumer Protection Act, 2019 and the E-commerce Rules, 2020, all firms were directed to become convergence partners in the National Consumer Helpline. All online ride-hailing services were encouraged to prioritise the following problems and take corrective action to guarantee effective consumer rights protection.


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