January 23, 2025: The Ministry of Consumer Affairs has issued notices to ride-hailing giants Ola and Uber over allegations of charging differential fares based on the type of smartphone used to book rides.
The notices, sent by the Central Consumer Protection Authority (CCPA), follow complaints that users of iPhones were being charged higher fares compared to Android users for identical rides. The ministry has sought clarification on the pricing mechanism employed by the companies and emphasized the need for transparency in fare calculations to prevent potential discrimination.
This move was prompted by recent reports from a Delhi-based entrepreneur, who shared findings on the platform X (formerly Twitter), alleging that ride fares varied depending on device type and even battery levels. The claims gained widespread attention when an image comparing fares on two phones for the same trip went viral in December.
Responding to the allegations at the time, Uber denied basing pricing on phone models, attributing any differences to factors like pick-up locations, estimated time of arrival (ETA), and other trip-specific variables.
Despite the denial, several social media users backed the entrepreneur's claims, alleging similar experiences of inconsistent pricing between Android and iOS devices.
Union Minister of Consumer Affairs Pralhad Joshi, taking serious note of the situation, directed the CCPA to investigate potential “unfair trade practices” by platforms like Ola, Uber, and Rapido. Joshi reaffirmed the government’s stance on consumer protection, stating, “We have zero tolerance for consumer exploitation. Transparency and fairness must be upheld at all times.”
The CCPA has requested detailed responses from the companies to ascertain the validity of the allegations and determine whether their pricing practices violate consumer rights.
This investigation marks another significant step by the government to regulate digital platforms and safeguard consumer interests in the evolving landscape of the gig economy.
STORY HIGHLIGHTS
Centre Issues Notice to Uber, Ola Over Alleged Differential Pricing Based on Smartphones
January 23, 2025: The Ministry of Consumer Affairs has issued notices to ride-hailing giants Ola and Uber over allegations of charging differential fares based on the type of smartphone used to book rides.
The notices, sent by the Central Consumer Protection Authority (CCPA), follow complaints that users of iPhones were being charged higher fares compared to Android users for identical rides. The ministry has sought clarification on the pricing mechanism employed by the companies and emphasized the need for transparency in fare calculations to prevent potential discrimination.
This move was prompted by recent reports from a Delhi-based entrepreneur, who shared findings on the platform X (formerly Twitter), alleging that ride fares varied depending on device type and even battery levels. The claims gained widespread attention when an image comparing fares on two phones for the same trip went viral in December.
Responding to the allegations at the time, Uber denied basing pricing on phone models, attributing any differences to factors like pick-up locations, estimated time of arrival (ETA), and other trip-specific variables.
Despite the denial, several social media users backed the entrepreneur's claims, alleging similar experiences of inconsistent pricing between Android and iOS devices.
Union Minister of Consumer Affairs Pralhad Joshi, taking serious note of the situation, directed the CCPA to investigate potential “unfair trade practices” by platforms like Ola, Uber, and Rapido. Joshi reaffirmed the government’s stance on consumer protection, stating, “We have zero tolerance for consumer exploitation. Transparency and fairness must be upheld at all times.”
The CCPA has requested detailed responses from the companies to ascertain the validity of the allegations and determine whether their pricing practices violate consumer rights.
This investigation marks another significant step by the government to regulate digital platforms and safeguard consumer interests in the evolving landscape of the gig economy.