Hyderabad: The Telangana Gig and Platform Workers Union (TGPWU) on Thursday, September 17, welcomed the Central Consumer Protection Authority’s (CCPA) directive to Rapido over excess charges to commuters, along with a penalty of Rs 10 lakh.
The CCPA imposed the penalty on September 15 on Roppen Transportation Services Pvt Ltd, which operates the ride-hailing platform Rapido, for misleading advertisements, unfair trade practices and the use of dark patterns that allegedly prompted riders to pay more before their rides were confirmed.
The action followed a sector-wide examination of cab and bike-taxi aggregator platforms over practices related to advance tipping and dynamic pricing, according to a press release from the Ministry of Consumer Affairs, Food and Public Distribution.
Higher the price, higher the chance of getting a ride
During its examination, the CCPA found that Rapido displayed prompts such as “Higher the price, higher the chance of getting a ride” and “Captains aren’t accepting at Rs 60. Try adding +10, +20, +30” while a rider’s booking was still being processed.
According to the CCPA, Rapido would first quote a fare and after the rider booked at that price, prompt them to pay an additional amount on the ground that drivers were not accepting the original fare.
“The practice created a false impression that a rider’s chances of getting a ride depended on paying more, particularly at a stage when the consumer had already committed to the booking,” the authority said.
It stressed that a tip cannot be sought before the ride, adding that the original fare shown on the app already accounts for the distance between the pick-up and drop locations. It therefore found no justification for subsequently asking riders to pay an additional amount for the same ride before it had even commenced.
The TGPWU welcomed the CCPA’s decision, saying, “Consumer protection and worker protection must go together. Platform companies must be transparent with both customers and workers.”
