Rapido, the bike and taxi service, has been penalized with a ₹10 lakh fine by the CCPA for running misleading advertisements. This action is in response to the company’s deceptive marketing strategies that have misled customers with false promises. The CCPA’s ruling also mandates that Rapido refund customers who were affected by these misleading practices. The case highlights the issue of deceptive advertising within the ride-hailing industry.
Specifically, the CCPA took action against advertisements that promised benefits like guaranteed autos, 5-minute auto availability, and ₹50 cashback. The reality often differed from these claims, leading to customer dissatisfaction. Complaints about Rapido’s services have surged, with many users reporting unmet promises. This has included a lack of timely rides, failure to provide promised cashback, and issues with driver conduct.
The most significant issue involves the ₹50 cashback offer. The advertisements presented this as a cash refund, whereas users received coins that could only be used for future rides and were limited to a 7-day validity. The CCPA has issued strict instructions to Rapido, requiring them to provide genuine ₹50 cashback to all affected customers and cease deceptive advertising immediately.