Rs 9,239 crore suit filed against Ola, Uber over surge pricing

Coming as a fresh trouble for app-based cab service operators in the national capital, a class action suit worth Rs 9,239 crore has been filed against both Ola and Uber. The suit has been filed by two NGOs seeking damages for imposing surge price in the last three years.

The suit comes after the Delhi high court had directed the cab operators in August that they will have to adhere to government pricing and they were asked not to charge exorbitant prices after August 22.

The suit has been filed by the NGOs — Nyaybhoomi and Pariwar Unity Road Safety Life Safety — before the National Consumer Disputes Redressal Forum and is likely to be taken up for consideration by the consumer forum on October 5.

The NGOs urged the consumer forum to direct the companies to deposit 20 per cent of the amount with NCDRC. Explaining the details of the plea before the NCDRC, Rakesh Agarwal, secretary of Nyayabhoomi, highlighted how surge pricing of Uber and Ola is closely linked to their conspiracy to kill all competition in the market. As per the NGOs, the sum has been calculated keeping in mind the average rider ship of the cab providers.

Mr Agarwal stated that the low prices offered to consumers on the one hand and heavy subsidies to drivers on the other are meant to capture both the demand and the supply by Uber and Ola. The gap between the buying and selling prices is huge which is partly funded through venture money and partly by charging surge prices.

Explaining the taxi service market scenario, Mr Agarwal added that: “Without subsidies, Ola’s survival is impossible, making it a sitting duck for acquisition by Uber. It is only a matter of time before India’s transport sector is captured and controlled by a 100% foreign owned Uber which will lease vehicles to the drivers’ who will be reduced to the status of bonded labour.”

The suit said, “The complainants are seeking refund to and on behalf of all passengers across the country of an estimated sum of Rs 9,239 crore being the excess amount collected by Ola and Uber in the past three years. The two companies started collecting excess fare in the form of surge pricing. Delhi high court passed an order directing the companies not to charge in excess of notified fares but the practice continues till date. Hence this complaint.”