Delhi high court supports Uber and Ola discounts, says consumer is king

It is just coincidental but holds much significance to the evolving taxi hailing market in India. Autorikshaws in Mumbai are going on strike today against taxi aggregators while the Delhi High Court has thrown its weight behind the very companies and their discount policies which the traditional taxis and autos are irked with.

 Delhi high court supports Uber and Ola discounts, says consumer is king

Image: IBNLive

According to a report in The Times of India newspaper today, the Delhi High Court while hearing a plea from the taxi associations has said that consumer is the king and discounts by companies such as Uber and Ola cannot be stopped.

 

"Suppose somebody wants to give discounts, can you (taxi association) say that consumers should not be given the benefit? Ultimately , consumer is the king," the court has been quoted as saying.

The comments assume significance as Uber, Ola and all such services have been facing resistance from the traditional operators across the country. Traditional tax drivers in Mumbai had even planned to develop an app to take on the these companies.

The auto-taxi strike in Mumbai has to be seen in this context.

The protesting rickshaw owners and drivers under the Mumbai Autorickshawmen's Union are demanding effective regulation on business operation of app-based taxi aggregators, including their pricing strategy to attract customers.

"The government has miserably failed to regulate the practice of transportation of passengers via cab services booked through call centres which are making a dent in our business," Union leader Shashank Rao has been quoted as saying in a PTI report.

The next hearing in the Delhi High Court is on 21 November and the government has been asked to file an affidavit

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Updated Date: Aug 31, 2016 12:32:00 IST