18 March 2024 – The Consumer Disputes Redressal Commission of Chandigarh ruled in favor of Ashwani Prashar, a customer who contested an exorbitant fare charged by Uber for a short ride. Prashar was awarded Rs 10,000 in compensation along with an additional Rs 10,000 for legal expenses after challenging a fare of Rs 1,334 for an 8.83-kilometer journey on August 6, 2021.
Prashar’s complaint stemmed from the significant disparity between the upfront fare displayed, which was Rs 359, and the final charge he incurred. Despite attempting to resolve the issue through customer chats and emails, he received no satisfactory resolution from Uber.
Uber India defended the fare hike, citing multiple route deviations during the trip. However, the commission deemed the discrepancy between the upfront fare and the actual charge as an unfair trade practice. Consequently, they ruled in Prashar’s favor, recognizing his entitlement to compensation for mental distress and harassment.
The commission emphasized Uber’s responsibility to maintain transparency and uphold consumer trust. They mandated that Uber deposit Rs 10,000 into the Consumer Welfare Fund, in addition to compensating Prashar and covering his litigation expenses.
The ruling underscored the expectation of consumers to engage directly with the branded service provider, rather than its undisclosed partners. It highlighted Uber’s accountability despite any hidden agreements with driver partners, stating that consumers lack insight into such contracts.
In response, Uber India refunded a portion of the fare in Uber Credits as a goodwill gesture, acknowledging the importance of reassuring users about the platform’s reliability. The ruling serves as a reminder to service providers to prioritize transparency and fair practices in their dealings with consumers.
