Ola uses murky tactics to vandalize Jugnoo's business

Jugnoo accuses Ola of employing unethical practices to sabotage their business and aggravate the drivers who are trying to earn a decent living by plying auto rickshaws. Ola employees have been creating fake accounts over the last 10 days to book and make cancellations on Jugnoo's app leading not only to loss of revenue to Jugnoo but 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. These accounts are being used to book a Jugnoo ride and then cancel it after some time, sometimes switching off the phone after booking the ride. This is keeping the drivers engaged unnecessarily, wasting their time and not letting the genuine customers book their ride, eventually causing a massive driver grievance.

Elaborating on the situation, Samar Singla, Co-founder and CEO at Jugnoo, said: "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. 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."

Source : Equity Bulls

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