The Gett taxicab hailing app (formerly GetTaxi) has begun charging passengers who order a cab and end up not taking the ride. The charge is NIS 10 per trip ordered. Gett bills the party ordering the cab automatically and directly from the credit card through which the customer usually pays for his rides.
The charge was first put into effect several months ago, but passengers noticed it only recently, because the app is programmed to charge the customer only after he has canceled rides a number of times and received a warning on his cellular device.
When a passenger cancels a ride, the app asks him to cite the reason for the cancellation, and to choose from several possibilities, one of which is reasons not dependent on him. The cancelation fee is charged even if the reason given is that the time spent waiting for the cab was longer than the time given when the order was made.
The company explains its charge by saying that it wants to compensate its drivers for the costs of the journey. Instead of giving all the money from the cancellation charge to the drivers, however, it keeps NIS 3 per cancellation for itself. Gett did not explain why it keeps money for each cancellation.
When rides are taken without using the Gett app by flagging down a cab on the street or ordering a cab from a taxi stand, a cancellation fee cannot be charged, because the taxi stand and the driver have no way of billing canceling customers.
Prices and payments for cabs are supervised by the Ministry of Transport, but the regulations say nothing about canceled rides. There is a complete absence of regulation any amount can be charged, and under any condition.
Gett currently does not charge for cancellations made within three minutes, after which it charges NIS 10. Because the law does not address the question, however, the company can charge more in the future and institute non-uniform charges. For example, it can charge more in areas and at times when demand is greater.
Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2016
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