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For Overcharging Customers, More Than 30 Vehicles of Uber, Ola Seized

Updated on 11 July, 2016 at 1:46 am By

More than 30 vehicles of Uber and Ola have been seized this week by Bengaluru transport officials for allegedly overcharging customers.

Rame Gowda, the Bengaluru-based commissioner of transport and road safety, said that the operations against the two companies are continuing.


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Ola Cabs iamwire

Ola Cabs
iamwire

 

The Karnataka government banned surge pricing on 6 April, and has set a per-kilometer price ceiling for air-conditioned and non air-conditioned cabs.

Many customers have complained about the rise in fares through petitions and social media. “Surge pricing is not in the rules. You have to follow the rules of the land, you cannot violate the rules of the land and harass the public,” said Gowda.

 



 

A person using Uber service eon phone businessinsider

A person using Uber service eon phone
businessinsider

Further, Gowda said that the commuters should file police complaints against Uber and Ola if they overcharge.

However, Bengaluru-based Ola sent out personalized emails to its base of users, saying that its pricing ensures reliability and availability for those who agree to pay a bit more on occasions such as weekends and holidays.


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“It’s a bit of economics 101: supply and demand adjust in response to price changes. Airlines and hotels follow the same practice,” it said.


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