Up to 70 per cent of users of app-based taxi service platforms such as Ola, Uber, Rapido, among others say that drivers cancelling rides after finding the destination and non-cash mode of payment are the top issues consumers face, a survey by LocalCircles—a community-based platform found.
The survey received over 65,000 responses from consumers in 324 districts on taxi aggregators. LocalCircles collaborated with the Bureau of Indian Standards (BIS) to form standards for app-based taxi services. The platform says that these standards will be made part of an internationally synchronised initiative, which is in the process of developing ISO standards for Sharing Economy Services.
The survey received 10,342 responses on the question of the top-most concerns that users faced with app-based taxi services. About 47 per cent said “Drivers cancelling the ride” was their top issue, while 32 per cent said they had issues regarding “Surge pricing”. Up to nine per cent said their top issue was “Long waiting times” and four per cent said “Cancellation charges”.- Another five per cent of users said “Safety issues” was a serious concern for them, and three per cent said “Non-compliance to COVID protocols of mask, social distancing, and hygiene/sanitisation protocols”
The government introduced the Motor Vehicle Aggregator Guidelines in November 2020, under which drivers were charged a cancellation penalty of 10 per cent of the fare which was capped at Rs 100. “However, most states haven’t operationalised these guidelines yet,” the study said.
Another issue the LocalCircles survey found was extortion. “Some drivers take bookings at odd hours at railway stations and other public places and once the customer arrives, drivers disconnect the taxi app and demand 1.5-2X price for the same journey,” the study said. Due to a lack of an alternate taxi option at odd hours, families have ended up paying this high price but felt terribly disappointed with the experience, the report said.
In another question, the survey sought to find users’ experience with surge pricing since the November guidelines were introduced. The question received 9,129 responses, out of which 45 per cent of app-based taxi users said they “Have paid more than 50 per cent of base fare in surge charges”, and another 22 per cent said they “Have paid surge charges between 0-50% of base fare only”. About 13 per cent of app taxi users said they “Have not had a need to pay any surge charges”, while 20 per cent couldn’t say.
“Such practices erode consumer trust and the surge pricing caps must be implemented by the platforms independent of whether the states operationalise the guidelines or not,” the study recommended. “The private extortionist practices of some drivers must be addressed by easily enabling consumers to report such events and then taking immediate termination action against such drivers,” it added.