Commuter wins legal battle over ‘unfair' bike taxi fare practices in Hyderabad
K Rajesh, 27, frequently uses bike taxis for commuting in the city. According to the complaint, Rajesh noticed a pricing anomaly while using the aggregator's app. On June 20, he booked a ride from Nallakunta to Himayathnagar, a distance of 2.14 km, and was charged Rs 32. However, on July 4, for a much shorter ride of just 300 metres, he was charged the exact same fare of Rs 32.
Rajesh submitted both fare invoices to the court, claiming the pricing model lacked transparency and misled consumers.
The aggregator argued that the fare was calculated based on base charges and surge pricing mechanisms. However, the commission found that applying the same price to such significantly different distances, especially when no clear justification was offered, amounted to deceptive pricing.
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The commission held that the aggregator's actions constituted an 'unfair trade practice' under Section 2(47) of the Consumer Protection Act, 2019.
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'A consumer expects fair pricing. Charging the same amount for rides with such a stark distance difference, without reasonable explanation, is deceptive,' the commission noted in its judgment.
The court directed the company to pay Rs 5,000 as compensation to the complainant for mental agony and inconvenience, along with Rs 2,000 towards litigation costs. It also advised the firm to revisit its fare algorithm and ensure pricing transparency to avoid misleading consumers—otherwise, passengers bear the brunt of hidden costs.
This case adds to the growing list of complaints against app-based ride aggregators, with consumers increasingly questioning surge charges, algorithmic pricing, and lack of accountability.
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