Government issues notice to Ola, Uber over differential pricing on iphone and android users
- In Reports
- 07:32 PM, Jan 23, 2025
- Myind Staff
The Indian government has issued notices to ride-hailing giants Ola and Uber, demanding an explanation for alleged price discrepancies in their apps on various devices.
Union Minister for Consumer Affairs, Food and Public Distribution and New and Renewable Energy Pralhad Joshi tweeted on Thursday that his department, via the Central Consumer Protection Authority (CCPA), has sent a notice to the companies Ola and Uber for their answer.
“As a follow-up to the earlier observation of apparent differential pricing based on the different models of mobiles (iPhones/Android) being used, the Department of Consumer Affairs, through the CCPA, has issued notices to major cab aggregators Ola and Uber, seeking their responses,” Joshi posted in X.
Some social media users shared videos claiming that iPhone users were being charged more than Android users for the same ride. This issue recalls a statement made by Joshi last year, who vowed to have "zero tolerance for consumer exploitation" in response to reports of differential pricing.
“This prima facie looks like unfair trade practice where the cab-aggregators are alleged to be using differential pricing based on the factors mentioned in the article below. If so, this is blatant dis-regard to consumer’s right to know,” Joshi penned. Joshi further stated that he has instructed his ministry, via the Central Consumer Protection Authority (CCPA), to launch a thorough investigation into this matter and provide a report as soon as possible.
People have also complained about issues with food delivery and quick-commerce apps. Now, the minister has instructed the Department of Consumer Affairs to investigate these problems, specifically in areas like food delivery apps and online ticket booking apps, as part of their efforts to "look into other sectors".
Social media users shared evidence, such as videos and posts, that iPhone users were quoted higher fares than Android users when booking rides on Ola or Uber. However, some users responded to Prahlad Joshi’s post today and pointed out that they had seen identical prices for Uber rides on both Android and iPhone in the past.
Uber responded that prices are determined by factors like availability and peak hours, not by the type of phone used. Ola hasn't commented on the issue yet. So far, neither Ola nor Uber has responded to the government's notice about this matter.
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