Several clauses in the terms and conditions (T&C) of cab hailing companies Ola and Uber are heavily weighted against unsuspecting customers, in ways that have so far evaded the radar of regulatory authorities.
Indicatively, these clauses severely limit the liability that the aggregators bear, and in at least one case, any mediation or arbitration on disputes can only be conducted in Amsterdam!
These revelations come at a time when both the companies are struggling to get approvals for their services from several State governments.
For instance, in its T&C, Ola’s parent, ANI Technologies, makes clear that it can unilaterally change the terms without any notification. It also mentions that it is not liable for any kind of damages and that its liability is limited to a payout of only ₹1,000.
That’s not all. “All rights that the customer has in the information provided to Ola (i.e., copyright/publicity rights, database rights etc) are licensed to Ola,” says another clause. In the case of Uber, the liability is limited to €500. One of the clauses in Uber’s T&C states that in case of a dispute, the mediation and arbitration shall be conducted in Amsterdam.
In an e-mail statement, Uber said it has a robust safety mechanism built into the App for the safety of its Driver-Partners and the riders using the App.
“In the unfortunate eventuality of an incident occurring, Uber always has and always will assist Law Enforcement Authorities in any and all of their enquiries and investigations,” the mail said.
Ola did not respond to several e-mails from BusinessLine seeking its comment on its T&C.
Karnataka’s Commissioner for Transport & Safety B Dayananda told BusinessLine that the High Court had stayed the State government policy on cab aggregators and asked the government not to take coercive action against cab aggregators until the case is disposed of.
Draft notification
Last year, the government had issued a draft notification laying down conditions under which the aggregators can operate. One of the conditions clearly states that the licence of the cab driver can be cancelled in case it is proved that he has violated any or all of the norms.
Most of the other clauses are quite severe in case of violations. These guidelines have been framed on the basis of the guidelines issued by the Ministry of Road Transport and Highways.
But an updated T&C issued by Uber dated March 16, 2017 states that it is merely a technology provider and it enables its users to coordinate transportation services with independent third-party services providers. Ola too has similar terms.
“You (the customer) acknowledge that Uber does not provide transportation or logistics services or function as a transportation carrier and that all such transportation or logistics services are provided by independent third-party contractors who are not employed by Uber or any of its affiliates.”
Uber’s T&C are in fact governed by Dutch laws. Therefore, any dispute between the passenger and Uber will have to be resolved in the courts of The Netherlands, as per the rules of the International Chambers of Commerce.
“Except as otherwise set forth in these Terms, these Terms shall be exclusively governed by and construed in accordance with the laws of The Netherlands, excluding its rules on conflicts of laws... the place of both mediation and arbitration shall be Amsterdam,” Uber’s T&C states.