Terms and Conditions Apply: Airbnb

Posted on by Karthic Vaidyanathan

The following post might look like a rant but this is a summary of the true events and how our group felt that we were taken for a ride by Airbnb. We had nowhere to complain or raise a grievance to help make things better. What was supposed to be a good break for us started as a nightmare. The year-end plans went for a toss thanks to the awesome Airbnb support staff and policies. For the first time, I felt the pain of not having enough time to read the fine print under the asterisks.

On Dec 21,2022, the federal weather agency issued a winter storm warning Canadians of the large amounts of snow followed by strong potentially damaging winds that could cause power outages across Ontario and Quebec. (Link source: CBC ) Flights and train routes were affected. One via rail had derailed en route to Ottawa and some passengers were even trapped inside the Via rail that followed the derailed one. Via rail sent us a notification 24 hours before travel that our onward journey is cancelled. Considering the severity of the storm, we decided to cancel our trip and contacted Airbnb to cancel our trip and what followed was a horrible experience with our friendly neighbourhood representative.

Inconsistent policies: I had spoken to four or five different customer service representatives and found that Airbnb’s policies are inconsistent. I received different answers to the same question from different customer service representatives. One mentioned that I was eligible for a 100% refund, another 0%, one didn’t know about the policies and wanted to contact the host for a refund. Rare weather events according to their policy are considered an event that entitles you to a 100% refund. But thanks to their awful customer service I didn’t even get 50% back.

Slow response times: I understand that it might have been horrible for them due to peak requests for cancellations. But the ones who I worked with worked at a snail’s pace. They figured out at around midnight after 4-5 hours that they need to contact the hosts who were asleep by then. In fact, it was the host who contacted me to tell me that he has offered a 50% refund as this is a last-minute cancellation. The customer service agent who I spoke to was not even aware of this and took hours to confirm this on their end.

Lack of helpfulness: Each customer service representative had their own answers and had their own interpretation of the policies. They were restless and were reading lines from a script rather than understand the situation. One customer representative cancelled my booking without my approval. My booking was for $1,200 and as per their calculation 50% is some $400-odd. They mentioned that Airbnb would only return any % of their fees if the host issues 100%. What is the customer service here. Basically, Airbnb pocketed $200+ without offering any service. To top it all, they charged the host and the host could relist the property again. There were no apologies or any regret shown from the agent. Nor did they even try to make an effort to help the customer in distress. If this winter storm that derailed a train is not considered a extreme event I do not understand what would qualify under Airbnb policies.

After all this mayhem our group still had a good vacation in Ottawa and the places around the capital. Thanks to my travel card which has an annual fee of over $100, we were able to recoup more than 90% of what we lost with Airbnb. Until then, I had my reservations about paying annually for a card but the $120 I paid for the card is totally worth it. My recommendation for everyone would be to get at least one card with features like travel insurance built in that will come in handy in uncertain times.

Airbnb can improve its customer service in many ways, some of them are

  • Be Accountable and Transparent: Airbnb customer service agents mentioned that they will only refund their service fees and other charges if the host issues a 100% refund. Even though the host returned 50% of the booking fee, Airbnb retained their charges, which amounted to more than $300. Should they not be transparent about these charges, be empathetic towards the customers, and match at least what the host refunded?
  • Clearer Communication: Communicate more clearly with your customers, especially when it comes to cancellation policies and fees. Every customer service agent had a different answer to the same question.
  • More personalized support: Airbnb should offer more personalized support to customers, taking into account their current situation, especially in places that are prone to weather disruptions. They should also bring priority and severity levels to their tickets and maintain a log of the conversation which the customers should be given access to.
  • Better training for customer service representatives: It felt like the representatives were reading from a script. Airbnb should commit and invest in better training for its customer service representatives to ensure that they are knowledgeable, accountable, empathetic, and have a clear path to escalation. Provide local support for the region wherever possible or at least give them access to know what is happening in that part of the world.

In a nutshell. Airbnb has lost a customer in me and I would encourage people to book with a card that has travel insurance bundled in.

“It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.”

— Henry Ford, Founder of Ford Motors

Money or Customer Service: Why Uber/Ola Drivers Cancel Your Rides

Posted on by Karthic Vaidyanathan

“Ola!” and “Uber” do not mean Hello and Outstanding anymore in Indian vocabulary. These words have become synonymous with ride-hailing services or app taxis. For audiences outside of India, Ola is much similar to Lyft and competes with Uber (and many others) in the ride-hailing service space. Besides cab rides, these companies have also turned their attention to offering 2-wheeler rides to delivery services similar to dabbawala. You can also avail tuk-tuk or auto rickshaw as it is locally called using these services.

Unlike in the Americas(at least most of the USA and Canada), ride-hailing services in India cannot employ everyone who owns a car. It is highly regulated in India and requires you to have a commercial license to operate with Uber and Ola. The cars should be registered with RTO otherwise known as the Regional transport office and in some cases the state government to be a part of the ride-hailing ecosystem. Tuk-Tuk locally referred to as auto, is a very popular option among riders.

Innovation is taking two things that exist and putting them together in a new way.

In 2017, my mom who was never comfortable with e-commerce or apps in general was at ease in using Ola and Uber. This was the inspiration to write this blog. Switch to 2022, booking a cab/auto on uber and ola was a nightmare. The rides were regularly cancelled for varying reasons. Some scenarios that I encountered were

  1. Drivers would call ask for the destination and cancel.
  2. Drivers would not answer the call of the riders
  3. Drivers demanded more money than what was shown in the app.
  4. Drivers sometimes had a callous attitude towards the customers.

The customer or the product manager in me wanted to get to know a little bit more and understand why the rides were cancelled. The ride cancellations did not burn my pockets but also resulted in losing valuable time that I could have enjoyed. I would have probably taken close to 50+ rides during my 3-week stay and used this as an opportunity to understand the problem of the drivers (Not a great sample size given India’s population but still significant in my view). The Ola/ Uber drivers were pretty vocal in showing their displeasure with the services.

  1. Too high a commission: Uber and Ola charge the drivers a commission based on the type of car and the rides. The drivers in India claimed that the charges of 30% commission are unfair. Some drivers were honest enough to share the amount they received for the ride and their claims were not incorrect. Transparency in how the commissions are charged could help the drivers understand it better.
  2. No Incentives: Each company goes through different phases of development in their journey. During their acquisition phase, Ola and Uber showered their customers and drivers with various incentives. I remember there was a time in which drivers received INR 1000 for 5 or so rides. These days the drivers complain that they do not receive any such good incentive that motivates them to ride.
  3. Not fairly compensated: Some drivers would cancel my ride saying that the fare for the ride is too low. I would then negotiate with the rider and tell him/her that i would pay a part extra in cash. Even then some rides were cancelled. Some of friends took it to the other extreme, they would ask the driver the to cancel the ride but would still request the driver to pick up them and pay them in cash. The drivers also complained that the inflation and the volatile gasoline rates are not taken into consideration. Ever fluctuating price of petrol is also another major concern.
  4. Delay in settlement: One puzzling question that most drivers asked me was “Are you paying me by cash or Ola/Uber money?”. The moment we mention wallet money, there is a frown amongst the drivers. The drivers will either request me to pay by cash or cancel without any notice. The issue that the drivers had with the ola money or uber money was the turnaround time was sometimes 2+weeks which for a daily wager is a bummer. Most drivers need to spend a part of their daily earnings on petrol(gas).

Uber and Ola have been pioneers in ride-hailing services and have been a step ahead in innovations and acquisitions. But this trend according to me is a serious concern and a product gap that the services need to address sooner. So how do you think they can arrest this decline? Feel free to drop in your comments and in 2 weeks let us discuss some solutions in my next blog.