Govt probes Ola and Uber over alleged fare discrimination based on mobile devices
New Delhi: The Ministry of Consumer Affairs on Thursday issued notices to Ola and Uber, seeking explanations regarding allegations of differential pricing based on the type of mobile device used to book rides, media reports said.
The Central Consumer Protection Authority (CCPA) initiated the inquiry following reports suggesting that the cab aggregators charged varying fares for identical services, depending on whether customers used an iPhone or an Android device, reported India Today.
In the notice, the CCPA asked the companies to clarify their pricing mechanisms and address concerns over potential discrimination.
The ministry termed the practice as “apparent differential pricing” and requested a comprehensive response to ensure fare calculations are transparent and equitable.
This action comes in the wake of a Delhi-based entrepreneur's revelations about fare disparities between Android and iOS devices.
He shared his findings through a series of posts on X, after comparing fares across devices and varying battery levels.
The issue first gained attention in December when an X user posted an image showing two phones displaying different fares for the same trip on the Uber app.
Responding to the viral post, Uber denied the allegations, stating that fare differences were not based on the type of mobile phone.
The company attributed such variations to factors like differences in pick-up points, estimated time of arrival (ETA), and drop-off locations.
Uber insisted it does not personalise trip pricing based on the rider’s phone manufacturer.
However, other social media users joined the debate, alleging that fares for identical rides varied when booked via Android and iOS devices.
Union Minister of Consumer Affairs Pralhad Joshi stepped in, directing the CCPA to investigate platforms like Ola, Uber, and Rapido for "unfair trade practices" and "blatant disregard" for consumers’ right to transparency.
Joshi emphasised the government’s “zero tolerance for consumer exploitation” and instructed the CCPA to conduct a thorough inquiry, urging the submission of a detailed report at the earliest.
The Ministry of Consumer Affairs has issued notices to Ola and Uber following allegations of charging different fares based on whether rides were booked via Android or iOS devices.
The government has demanded clarity on pricing mechanisms, with Union Minister Pralhad Joshi emphasising zero tolerance for consumer exploitation.
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