On Thursday, the Ministry of Consumer Affairs sent notices to ride-hailing services Ola and Uber, seeking clarification concerning reports of purported differential pricing based on the type of mobile device utilized to book rides.
The Central Consumer Protection Authority (CCPA) initiated this action after reports emerged indicating that the two firms were imposing varying fares for the same ride, contingent on whether the customer employed an iPhone or an Android phone.
The CCPA’s notice requested the companies to clarify their pricing strategies and respond to worries about possible discrimination. The Ministry labeled the situation as “evident differential pricing” and demanded a comprehensive response to guarantee fairness and transparency in fare calculation.
This action comes after observations from a Delhi-based entrepreneur, who posted his findings regarding fare discrepancies across devices on X, highlighting variations in pricing based on smartphone model and battery levels.
The matter first drew attention in December when a user on X shared images illustrating different fares for the same ride on Uber, depending on whether an iPhone or an Android was utilized.
Uber replied to these allegations, denying any connection between fare differences and the type of phone utilized. Instead, the company explained that the discrepancies were due to variations in pick-up points, estimated time of arrival (ETA), and drop-off locations, and clarified that it does not customize pricing based on the user’s mobile phone brand.
Regardless of Uber’s response, additional social media users participated, claiming they too encountered different fares for the same rides when utilizing alternative devices.
In response to this, Union Minister of Consumer Affairs Pralhad Joshi directed the CCPA to examine platforms such as Uber, Ola, and Rapido for “unfair trade practices” and “flagrant disregard” for consumer rights to transparency.
Joshi highlighted that the government maintains a “zero tolerance for consumer exploitation” and instructed the CCPA to carry out a thorough investigation and promptly present its findings.
