HC won’t stop taxi discounts

New Delhi, Aug. 30: “Consumer is the king”, the Delhi High Court said on Tuesday while observing that it cannot say lower charges should not be levied and discounts not given to customers by app-based cab providers like Ola and Uber.

Justice Manmohan said if a company gave discounts, then the customers benefited and the app-based cab service providers were more interested in the number of hits by the consumers.

The observation came during the hearing of an application by a taxi association which alleged that app-based cab service providers like Ola and Uber were not complying with the court’s August 11 directions and not following the rates prescribed by the government.

“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 said.

The way in which the industry works is very, very different, especially in case of app-based industries. Its valuation is by the number of hits. — DELHI HIGH COURT

“Today, 4G prices have been cut by 40 per cent by a telecom company. Shouldn’t consumers be given benefits? The state government's notification does not say discounts cannot be given to the consumers,” the court said.

“This court cannot say that less charges should not be levied by them. After all, the consumers should be benefited. Court cannot exercise this power,” it said.

The court, which fixed the matter for further hearing on November 21, has asked Delhi government to file an affidavit stating whether there was any fixed minimum fare.