Bhavish Aggarwal and Ankit Bhati together launched ‘Ola Cabs’ in 2010.
Taxi service company Ola Cabs will now have to give the consumer the option to choose between a bank account or a voucher in the refund process.
Currently, if a customer requests a refund on the Ola app, the company gives them a refund coupon, which they can use only for the next ride on the Ola app.
On Sunday, October 13, the Central Consumer Protection Authority (CCPA) issued this order against the company. The regulator said, “Whether the consumer requests a refund directly to their bank account or in the form of a voucher, Ola Cabs will have to make the refund in the same form.
Highlights of the order…
The Ministry of Consumer Affairs said that not offering the possibility of refunds constitutes a violation of consumer rights. By doing this, the company forces customers to take another trip. CCPA Chief Commissioner Nidhi Khare has asked Ola to provide invoices or receipts to customers for all car rides booked through its platform, if a consumer wants to get a challan for one. car trip booked on the platform, the application refuses to do so, citing a “change in car service rules”.
More than 2,000 complaints against the company until October 9 this year
Till October 9 this year, 2,061 complaints were filed against Ola on the National Consumer Helpline (NCH), most of which related to fares beyond the time of booking and non-refund of the amount to customers.
Last week, the CCPA issued a show cause notice
Last week, the CCPA had issued a show cause notice to Ola Electric Mobility for alleged violation of consumer rights, misleading advertising and unfair trade practices. More than 10,000 complaints have been filed against the NCH-listed company.
Bhavish Aggarwal and Ankit Bhati are college friends. In 2010, they both launched “Ola Cabs”.
How does Ola make money?
Ola only provides taxi booking service. The company does not have its own car. Despite this, how does the company make money? Ola’s job is to connect customers and drivers through its app. Ola charges a few percent commission on bookings made on the app. This is how the company wins.
Apart from India, Ola also provides services in Australia, New Zealand and the United Kingdom. Ola is present in 7 cities in Australia. The company says there are 41,000 drivers available on the Ola app in Australia. The company launched auto rickshaws in the UK in 2019.