CCPA Orders Ola To Offer Refund Choices, Auto Ride Invoice
by Pooja Yadav · Inc42SUMMARY
- The CCPA has directed ride-hailing major Ola to roll out consumer-friendly changes, including offering refund options and providing receipts for auto rides
- The regulatory authority observed that whenever a consumer raised any grievance on the Ola app, the company, under its no-questions-asked refund policy, only offered a coupon code for future rides without giving a clear choice to opt between a bank account refund or a coupon
- The authority further observed that if a consumer attempts to access an invoice for auto rides booked on the platform, the app does not provide any customer invoice due to a ‘change in auto service terms and conditions’
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The Central Consumer Protection Authority (CCPA) has directed ride-hailing major Ola to roll out consumer-friendly changes, including offering refund options and providing receipts for auto rides.
The regulatory authority observed that whenever a consumer raised any grievance on the Ola app, the company, under its no-questions-asked refund policy, only offered a coupon code for future rides without giving a clear choice to opt between a bank account refund or a coupon.
“It was observed that this violates consumer rights and the no-question-asked refund policy cannot mean that the company incentivises people to simply use this facility for taking another ride,” the Ministry of Consumer Affairs said in a statement.
CCPA chief commissioner Nidhi Khare also instructed Ola to provide consumers a bill or receipt or invoice for all auto rides booked through its platform, to ensure greater transparency and accountability in its services.
The authority further observed that if a consumer attempts to access an invoice for auto rides booked on the platform, the app does not provide any customer invoice due to a ‘change in auto service terms and conditions’.
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A total of 2,061 complaints against Ola cabs have been lodged on the national consumer helpline (NCH) this year until October 9, of which the most are about higher fare charged from the booking time and non-refund of amount to consumers.
The most common complaints include higher fares charged than initially shown at the time of booking, non-refund of amounts, drivers demanding extra cash, and drivers failing to reach or dropping passengers at incorrect locations.
This comes days after days after the Centre has now stepped up the heat on the EV maker.
As per Livemint, the Ministry of Heavy Industries (MHI) has written to the Automotive Research Association of India (ARAI) to verify if the EV maker is indeed honouring warranties and maintaining service centres as required.
The company has come under regulatory scanner at a time when legacy players such as TVS and Bajaj are eating into its market share. For context, in September 2024, Ola Electric’s two-wheeler registrations declined 11% month-on-month (MoM) to 23,965 units, the lowest sales since October 2023.
Meanwhile, on the financial front, losses continue to pile up. The EV major reported a net loss of INR 347 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25), up 30% from INR 267 Cr in Q1 FY24. Operating revenue rose 32% to INR 1,644 Cr during the quarter under review as against INR 1,243 Cr in Q1 FY24.