After Uber, Jugnoo accuses Ola of using unethical practices to sabotage business

After Uber, Jugnoo has accused Ola of employing unethical practices to sabotage their business and aggravate the drivers as well. Ola employees have reportedly been creating fake accounts over the last 10 days to book and make cancellations on Jugnoo’s app, leading to loss of revenue to Jugnoo and also affecting the auto rickshaw drivers income and bonus on daily basis.

Jugnoo stated in a press statement that, “About 20,000 cancellations through 800 fake accounts have been reported to occur during this period. These accounts are being used to book a Jugnoo ride and then cancel it after some time, sometimes switching off the phone after booking the ride. This is keeping the drivers engaged unnecessarily, wasting their time and not letting the genuine customers book their ride, eventually causing a massive driver grievance.”

Elaborating on the situation, Samar Singla, Co-founder and CEO at Jugnoo, said: “We witnessed this trend almost 10 days back when all of a sudden there was a surge in booking and the cancellation rate was equally high. We started mapping the areas where the bookings were being made from and invariably pointed at places close to Ola’s office premise. We noticed this across three locations Gurgaon, Noida and Mysore where this activity was highly being employed. We have evidence to support our claims and will be more than happy to furnish the details if required. We are planning to take suitable legal action against Ola for the same, but will refrain from doing so if they cease to do this."

Uber has also accused Ola employees of creating fake accounts on its app, which eventually led to it facing huge losses. Rajiv Nayyar, counsel for Uber India has reportedly told the court that more than 50,000 fake cancellations were made in the period between August and March 2016. “Large number of fake accounts are being created by Ola which are then used to make false booking and cancellations using our application. This keeps our drivers busy and we have to bear the cancellation charges. Such false cancellation roughly amounted to 8-10℅ of its total bookings,” he said.