What happened in the Uber case?

An Uber driver refused to complete a trip and charged the passenger Rs. 105. The company also failed to process a promised refund.

What was the penalty imposed on Uber?

Uber was fined Rs. 15,000 for mental agony and harassment and was required to pay litigation costs.

What should you do if your cab driver refuses to offer promised services?

Keep proof of the ride and payment, file a complaint with the company’s customer support, and if necessary, approach your local consumer court.

What does the court ruling indicate about Uber's responsibility?

The court ruled that Uber, as the managing entity of the app, is liable for the actions of the drivers and must ensure consumer rights are protected.

Why did Uber appeal the decision?

Uber claimed it was not given a fair chance to present its case and argued that it was just a platform, not responsible for the driver’s actions.

What happened in the Uber case?

An Uber driver refused to complete a trip and charged the passenger Rs. 105. The company also failed to process a promised refund.

What was the penalty imposed on Uber?

Uber was fined Rs. 15,000 for mental agony and harassment and was required to pay litigation costs.

What should you do if your cab driver refuses to offer promised services?

Keep proof of the ride and payment, file a complaint with the company’s customer support, and if necessary, approach your local consumer court.

What does the court ruling indicate about Uber's responsibility?

The court ruled that Uber, as the managing entity of the app, is liable for the actions of the drivers and must ensure consumer rights are protected.

Why did Uber appeal the decision?

Uber claimed it was not given a fair chance to present its case and argued that it was just a platform, not responsible for the driver’s actions.

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Uber To Pay Penalty To Consumer For Driver’s Refusal To Complete Trip: PSCDRC

Samridhi

Author

Updated: 28-01-2025 at 6:25 AM

Uber To Pay Penalty To Consumer For Driver’s Refusal To Complete Trip: PSCDRC

Recently, a case of consumer protection was adjudicated by the State Commission of Punjab. The Complainant, who was travelling from Zirakpur to Kalka was left shocked when the cab driver, an Uber driver, refused to complete the trip. Let's find the details.

The Punjab State Consumer Disputes Redressal Commission (PSCDRC) reaffirmed the decision of a lower consumer court and awarded a penalty of Rs. 15000 to Uber. It imposed litigation costs and damages for mental agony and harassment on the Company.

The case was initiated after the Complainant, a consumer who used services provided by Uber, booked a ride or a cab from Zirakpur to Kalka in March 2017. The driver of the cab refused to continue the ride and forced the appellant to get out of the cab after travelling for a short distance.

The driver of the cab reportedly also charged the passenger Rs. 105 for the distance travelled by him in the car. After lodging a concern with the customer support services of Uber, the complainant was assured a refund, however, no such refund was ever processed.

Acting on the lack of redressal by the Company’s services, the Consumer decided to file a case in the Mohali District Consumers Disputes Redressal Commission. The District forum dule took into account the submissions and evidence associated and imposed a penalty of Rs. 15,000 on Uber, the Defendant in this case.

Uber moved the State Commission against this order by the District Commission, after contesting that no fair opportunity to be heard was provided to the Company at the time of the hearing. It also cited constraints in place due to the COVID-19 pandemic.

Aggrieved by the decision of the Hon’ble District Commission, Uber appealed its order before PSCDRC. It contended that it was merely a platform connecting drivers with passengers and was not actively involved in the process of such ‘rides’.

Contesting that Uber is merely a technological platform and that the driver was not an actual employee of Uber, but merely a contractual driver associated with the platform, the Company opposed the decision of the Consumer Court. It asked the State Commission to absolve Uber of any charges or deficiency in services and quash the complaint.

Decision Of The Consumer Commission

The State Commission, after considering the arguments and evidence adduced by both sides reaffirmed the decision of the District Commission. The Hon’ble Court, while ruling against the appellants (Uber), highlighted that ample opportunities were provided to Uber to present its case before the District Commission, however, the Company acted in negligence of such opportunities.

A bench comprising Presiding Member HPS Mahal and member Kiran Sibal also noted that Uber had an ‘intermediary’ role in the transaction. It added that in cases of employer-employee relationships, the employer is held liable for the actions of the employee.

The Court in its decision, said, “It is established that the Uber App is managed and controlled by the appellant/OP No.2 and also all transactions and services provided via said App are managed by the appellant. It is a settled principle of law that in an employer-employee relationship, the employer is liable for the acts of the third party and is also responsible to provide the social security benefits.”

What To Do In Case Your Cab-Driver Refuses To Offer Promised Services?

The Uber case is a common occurrence nowadays with drivers refusing to go to a particular place after booking the ride, asking for more money or dropping off passengers in the middle of the ride. In light of the increase in such events, one must know of the legal and alternative remedies available.

One must always keep the proof of rides booked and the payment details as a safe option.
Inform the company by raising a complaint with their customer support services. Record any such calls or mail that you may initiate along with the responses.
In case this does not suffice, move to the Local Consumer Court wherein you can sue the service-providing company for breaching your consumer rights.

Such legal precedents set examples and avert such occurrences in the future. Read more about such scam-related articles by Jaagruk Bharat and save yourself and your loved ones during such susceptible times.

Conclusion

With the increase in the provision of goods and services and technological advancement, the nature of breaches in consumer rights has also changed. Courts keep interpreting the law as per the situation to remedy consumers and uphold their constitutional as well as statutory rights.

Remember, do not forget to speak up and take action in case something like this happens to you.

For more information, you can access this judgement here. Reach out to your nearest Consumer Court for more guidance and stay connected with Jaagruk Bharat for more such information.

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