Government Issues Notice to Ola and Uber Over Pricing Discrepancies Between Android and iOS Users
New Delhi (The Uttam Hindu): The government has sought explanations from Ola and Uber after several reports surfaced on social media, claiming that users were being charged different fares for identical rides when booking through Android and iOS devices. On Thursday, the Ministry of Consumer Affairs issued notices to the cab aggregators, requesting clarification on the alleged differential pricing based on the type of mobile device used to book the rides. The Central Consumer Protection Authority (CCPA) initiated the action after reports suggested that both companies appeared to charge different fares for the same service, depending on whether the customer was using an iPhone or an Android phone.
In its notice, the CCPA requested the companies to clarify their pricing methods and address concerns over potential discrimination. The ministry referred to the practice as "apparent differential pricing" and asked for a detailed response to ensure transparency and fairness in fare calculations. This move follows a series of posts on X by a Delhi-based entrepreneur,Government Issues Notice to Ola and Uber Over Alleged Pricing Discrepancies Between Android and iOS Devices who compared fares on different devices and battery levels, revealing discrepancies in pricing. The issue gained attention in December after an X user posted a picture of two phones showing different fares for the same location on the Uber app. As the post went viral, Uber denied that pricing was based on the type of phone used, claiming that any fare differences were due to variations in pick-up points, estimated time of arrival (ETA), and drop-off points.
The company insisted that it does not personalize trip pricing based on the mobile phone brand. However, more social media users came forward, claiming that they were being charged different fares for identical rides on Android and iOS devices. In response, the government intervened, with Union Minister of Consumer Affairs Pralhad Joshi directing the CCPA to investigate platforms like Ola, Uber, and Rapido for "unfair trade practices" and "blatant disregard" for consumers' right to transparency. Joshi emphasized the government's "zero tolerance for consumer exploitation" and instructed the CCPA to conduct a thorough investigation and submit a report as soon as possible.
