Uber changes terms after being faulted for misleading customers

Ride-hailing firm Uber has amended its terms and conditions after a regional consumer watchdog found that it was misleading customers who, in some instances, would end up paying more than the agreed price.

The Comesa Competition Commission (CCC) started its investigations on the company in September 2023 for what it said was possible false and misleading representation and unconscionable conduct towards consumers.

This was against consumer complaints about Uber's services in Kenya, Uganda and Egypt. Among the issued that consumers had raised at the time included price surges during a rise occasioned by factors such as traffic jams, which at the time were common and ended with customers paying more than they had planned for.

In the decision announced on September 18, the Commission said it found that Uber would in some cases change the cost of a ride mid-way, despite the factors necessitating the variation in pricing having been out of the control of the user.

CCC, which acts as both a competition and consumer watchdog, noted consumers should not bear the entire cost in case of unforeseen circumstances such as traffic jams and that the cost should be split between Uber and the user.

It also said that Uber had cooperated during the probe and had agreed to change its terms and conditions to comply with regulations that govern doing business within the Common Market for Eastern and Southern Africa (Comesa).

"Where the deviations in prices include those that have not been caused by the rider, for example traffic jams, accidents, roadblocks and others, in such circumstances, the consumer is misled on displayed and agreement price prior to confirming the trip," said the Commission.

"Consumers should not be obliged to pay a price higher than what was agreed particularly where the circumstances leading to a change in price were not of their fault, ideally, where neither party was responsible for deviation in prices such as in the case of force majeure (traffic jam, broken bridge, blocked road or accidents), the consumer should not solely bear the cost, instead, each party should share their respective losses and any possible payments should be negotiated between the parties, as opposed to automatically being passed down to the consumer."

It however said that the users should pay additional charges in instances where they cause the delay such as through keeping Uber drivers waiting.

The Commission also noted that Uber had different conditions in developed markets such as the UK and France, where the firm accepts liability in some instances.