The Central Consumer Protection Authority (CCPA) has directed the online ride-hailing platform Ola to implement a mechanism allowing consumers to choose their preferred method of refund. Additionally, Ola has been asked to provide consumers with a bill or receipt for Auto rides booked through the platform.
CCPA, headed by Chief Commissioner Smt. Nidhi Khare, observed that Ola app only provided a coupon code as part of its no-question-asked refund policy whenever a consumer raised any grievance. While the code can be used for the next ride, the app fails to offer an option for direct bank account refund. According to CCPA, the lack of choice violates consumer rights as the policy incentivises people for taking another ride.
Additionally, the CCPA observed the unavailability of invoice or receipt for Auto rides booked on the Ola app. If a consumer attempts to get a bill for such rides, the app shows the message– ‘Customer invoice for Auto rides will not be provided due to changes in Ola’s auto service T&Cs.’ The authority says that not issuing bill or invoice or receipt for the goods sold or services rendered constitutes an ‘unfair trade practice’ under the Consumer Protection Act, 2019.
Most frequent complaints made by customers
According to National Consumer Helpline (NCH), a total of 2,061 complaints have been registered against Ola from January 1, 2024 to October 9, 2024. The top categories of complaints include:
- Higher fare charged from consumer than what was shown at the time of booking the ride
- Non-refund of amount to the consumer
- Driver asking for extra cash
- Driver did not reach the correct location or dropped at incorrect location
Changes made to Ola app
CCPA also listed some consumer-centric changes in the Ola app and website after its intervention. The Ola website now showcases the name, phone number, and e-mail of Grievance Officer and Nodal Officer in the Support section of the website. Meanwhile, the app now displays the permitted time of cancellation at the time of booking a ride in addition to a clear mention of cancellation fee on the ride booking page.
The app has added more reasons against which a consumer can cancel a ride. It also showcases a list of components that constitute the total fare. For drivers, it has added a new acceptance screen, informing them about both pickup and drop locations. It also revised payment cycles for drivers so that they get payment swiftly.
