Uber Hit With ₹20,000 Penalty for ₹1,000 Overcharge on Short Ride

A Chandigarh consumer court has ruled in favor of a passenger, Ashwani Prashar, who was charged ₹1,334 for an 8.83-kilometer Uber ride in August 2021. The upfront fare displayed before booking was only ₹359, highlighting a significant discrepancy.

Key Points:

• Excessive Fare: Prashar contested the exorbitant fare and received compensation of ₹10,000 for mental distress and harassment.
• Unfair Trade Practice: The court deemed the difference between upfront and final fares an unfair trade practice.
• Transparency & Consumer Trust: The court emphasized the importance of transparency and upholding consumer trust for service providers like Uber.
• Uber’s Defense: Though Uber argued the fare hike resulted from route deviations, the court found it insufficient justification.
• Consumer Welfare Fund: The court mandated Uber to deposit an additional ₹10,000 in the Consumer Welfare Fund.
• Responsibility on Uber: The ruling underlines that consumers contract with Uber, not its drivers, regardless of any internal agreements.
• Partial Refund: Uber responded by offering Prashar a partial refund in Uber Credits as a gesture of goodwill.

Significance:

This case sets a precedent for holding ride-hailing services accountable for unexpected fare hikes. It highlights the importance of clear upfront pricing and protects consumers from misleading practices. The ruling emphasizes transparency and consumer protection in the growing digital service landscape.