Bhavish Aggarwal and Ankit Bhati are college friends. In 2010, both of them together started 'Ola Cabs'.
Cab service providing company Ola Cabs will now have to give the consumer the option to choose between bank account or coupon while giving refund.
Currently, if any customer complains for a refund on the Ola app, the company gives him a coupon as a refund, which he can use only for the next ride on the Ola app.
On Sunday (October 13), the Central Consumer Protection Authority (CCPA) issued this order to the company. The regulator said, 'Whether the consumer demands a refund directly into his bank account or in the form of a coupon, Ola Cabs will have to give the refund in the same form.'
Important details of the order issued by CCPA…
- The Consumer Ministry said that not giving the option for refund is a violation of consumer rights. By doing this the company forces customers to take another ride.
- CCPA Chief Commissioner Nidhi Khare directed Ola to provide bills or receipts or invoices to customers for all auto rides booked on its platform.
- The regulator said that if a consumer wants to get an invoice for an auto ride booked on the platform, the app refuses to do so citing 'change in the rules of auto service'.
More than 2000 complaints against the company till October 9 this year
Till October 9 this year, 2,061 complaints were lodged against Ola on the National Consumer Helpline (NCH), most of which were related to fare exceeding the time of booking and non-refund of amount to customers.
Last week CCPA had issued a show cause notice
Last week, 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 were filed against the listed company on NCH.
Bhavish Aggarwal and Ankit Bhati are college friends. In 2010, both of them together started 'Ola Cabs'.
How does Ola make money?
Ola only provides cab booking service. The company does not have any car of its own. Despite this, how does the company make money? Ola's job is to connect customers and drivers through its app. Ola takes a commission of some percent from the bookings made on the app. This is what earns the company.
Apart from India, Ola also provides services in Australia, New Zealand and United Kingdom. Ola is present in 7 cities of Australia. The company claims that there are 41 thousand drivers available on Ola app in Australia. The company launched auto rickshaws in the United Kingdom in 2019.
Graphics Source: VaskarAssets
