Maharashtra Cracks Down on Ola, Uber Over Alleged Coercive Tip Demands

 Mumbai: App-based ride-hailing platforms like Ola and Uber will now face stern action in Maharashtra for allegedly coercively soliciting tips from passengers. Calling the practice unfair to the commuters, Maharashtra transport minister Pratap Sarnaik has directed immediate action against the companies involved to curb such arbitrary practices.

“The practice of app-based taxi and ride-hailing services coercively soliciting tips from passengers is unfair to the commuters. Instructions have been issued to the Transport Commissioner to take immediate action against the concerned companies regarding this matter. The Transport Department will implement significant measures to curb the arbitrary practices of app-based taxi and ride-hailing companies. Furthermore, a new aggregator policy will be introduced soon in this regard,” Sarnaik said on Thursday.

The decision comes on the backdrop of concerns raised by Shiv Sena (Shinde faction) MP Shrikant Shinde regarding app-based taxi and ride-hailing services. These companies are involved in practices such as coercing passengers for tips, forcing additional charges and financially exploiting passengers by taking advantage of their difficult situations.

Expressing strong displeasure over these issues via social media, Shinde had demanded that such exploitative and anti-consumer practices be immediately curbed and strict action be taken against the companies involved. According to him, numerous complaints had surfaced from passengers in recent days regarding various app-based taxi services. Incidents such as demanding extra tips or additional fares after accepting a ride, cancelling the trip or harassing passengers mentally if the demands were not met, have become frequent.

Shinde argued that holding passengers to ransom during times of need, exploiting their predicament for financial gain and coercing them into paying exorbitant amounts infringes upon consumer rights. “This is not merely an unethical business practice but akin to holding customers hostage. While a voluntary tip serves as an acknowledgment of quality service, pressuring customers for tips or extra charges, threatening to refuse service or causing mental harassment is unacceptable under any circumstances. Access to transparent, fair and safe service is a fundamental right of the consumer,” he had said.

Responding to his demand, Sarnaik announced that instructions had been issued to the Transport Commissioner to investigate the operations of the concerned companies and take necessary action. Terming the practice of coercing passengers for tips as unjust, the minister further stated that the Transport Department would implement significant measures to curb the arbitrary practices of app-based taxi and ride-hailing companies.