Af­ter Uber, Jug­noo ac­cuses Ola of un­eth­i­cal prac­tices

The Pak Banker - - COMPANIES/BOSS -

Af­ter taxi ag­gre­ga­tor Uber, au­to­book­ing app Jug­noo has also al­leged Ola of us­ing "un­eth­i­cal prac­tices to sab­o­tage" its busi­ness. The com­pany also warned Ola of le­gal ac­tion if the on­line taxi ag­gre­ga­tor con­tin­ues al­leged un­eth­i­cal prac­tices.

"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," Jug­noo co-founder and CEO Sa­mar Singla said in a state­ment.

Jug­noo has al­leged that Ola em­ploy­ees have been creat­ing fake ac­counts over the last 10 days to book and can­cel on Jug­noo's app, lead­ing not only to loss of rev­enue but also af­fect­ing the auto rick­shaw driv­ers in­come and bonus on daily ba­sis.

About 20,000 can­cel­la­tions through 800 fake ac­counts have been re­ported to oc­cur dur­ing this pe­riod, the state­ment said.

"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," Singla said. Ola's com­peti­tor Uber has dragged it to the court al­leg­ing sim­i­lar mal­prac­tices. Uber has filed plea be­fore the Delhi high court seek­ing Rs.49.61 crore as dam­ages from Ola for al­legedly in­ter­fer­ing in its busi­ness by mak­ing fake ac­counts to book rides and then can­cel them.

Ola de­nied the al­le­ga­tions made by Uber and told the court it has no in­ten­tion of in­dulging in any of the ac­tions at­trib­uted to it by its com­peti­tor. Uber in its plea al­leged that Ola's em­ploy­ees have cre­ated over 93,000 fake ac­counts across In­dia on Uber's plat­form and were us­ing them to make false book­ings which were later can­celled and thus, caus­ing loss to Uber which has to pay the can­cel­la­tion charges. It has claimed to have paid over Rs.5 lakh as can­cel­la­tion charges and al­leged that by mak­ing false book­ings, Ola was "squat­ting" on cabs as­so­ci­ated with Uber.

Ola, on the other hand, con­tended in the court that Uber's plea is an "off­shoot" of the con­tempt pe­ti­tion filed against it by Ola for al­legedly not com­ply­ing with court di­rec­tions to phase out diesel cabs.

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