Bengaluru: Uber, Ola increase cancel charges

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Bengaluru, July 12: In order to give compensation to drivers, the online taxi aggregators, ola and Uber on Tuesday, (July 12) increased the price rate of canceling taxi.

Ola cancellation fee ranges from Rs 25 to Rs 200; Uber's is between Rs 50 and Rs 150.


Ola executive was quoted by media reports as saying, "The cancellation fee is charged when a passenger does not turn up at the pick-up point. Cancellation fee will be given to the driver as compensation for reaching the point." Ola also asks passengers to explain the reason for canceling the trip.

On the same note, Uber claims that cancellation charges apply to the rider only if they cancel the ride after five minutes of booking to compensate for the time and distance travelled by the driver and keep the marketplace efficient. If they cancel within five minutes then there will be no cancellation charges.

Transport commissioner Rame Gowda said, "We have been saying that taxi aggregators will come up with different terms to fleece passengers. There is no provision under the new rules for them to charge a cancellation fee. Taxi aggregators are also applying a surcharge when there is high demand".

He further said, "Now the matter has reached the Karnataka High Court, we are waiting for the court's direction on the issue. The court has directed us not to initiate action against taxi aggregators on surge pricing but has barred them from charging a surcharge."

However, the transport department maintains that as per the new taxi guidelines there is no such provision for the imposition of cancellation fee.

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