American company Uber, which provides online cab service, has been accused of violating business rules in India. Uber is alleged that the company has intentionally incurred a loss of Rs 200 on every ride. Now the Supreme Court has ordered an inquiry into this matter.
What is the matter
According to Business Today news, in 2015, Uber's rival Meru Cab complained against Uber at the Competition Appellate Tribunal (COMPAT). In this complaint, Meru cab claimed that Uber is taking deliberate damage to increase business in the country. In the complaint, it was claimed that breaking business rules, Uber is providing cheap rides to customers by taking a loss of close to Rs 200 per ride. Apart from this, the company is giving heavy incentives to the drivers. Meru cab says that Uber is forcing drivers to keep on their platform through this greed.
What happened next
The Complaint Appellate Tribunal has justified this complaint of Meru Cab, saying that there is enough evidence against Uber. The tribunal ordered an inquiry into the case. Uber approached the Supreme Court against this decision. Now the Supreme Court has upheld the tribunal's order dismissing Uber's petition.
The court has ordered CCI Director General (DG) to say, "Uber is a big company in Delhi-NCR radio taxi business. In such a situation, the DG will be expected to investigate the matter and tell if the company has broken the business rules. Along with this, how much effect it has had on other rivals should also be known.
Here, let me tell you that before going to the tribunal, Meru Cab had complained against Uber in Competition Commission of India (CCI). But the CCI dismissed Meru Cab's complaint.
