Uber, Ola face legal notices over alleged pricing based on device type

The Ministry of Consumer Affairs has issued notices to ride-hailing platforms Ola and Uber, seeking clarification on allegations of differential pricing based on the mobile device used for booking rides.

The Ministry of Consumer Affairs issued notices to ride-hailing platforms Ola and Uber on Thursday, demanding clarification regarding allegations of price variation based on the type of mobile device used for booking rides. The Central Consumer Protection Authority (CCPA) acted after receiving reports suggesting that the companies might be charging different fares for the same service depending on whether the customer was using an iPhone or an Android smartphone.

"As a follow-up to the earlier observation of apparent #DifferentialPricing based on the different models of mobiles (#iPhones/ #Android) being used, Department of Consumer Affairs through the CCPA has issued notices to major cab aggregators #Ola and #Uber, seeking their responses," Consumer Affairs Minister Pralhad Joshi said in a social media post.

Last month, Joshi stressed the importance of maintaining "zero tolerance for consumer exploitation" and directed the CCPA to carry out a comprehensive investigation into these claims.

He referred to the practice as a "prima facie unfair trade practice" and a clear violation of consumers' right to transparency.

The CCPA, in its notice, requested the companies to clarify their pricing strategies and respond to concerns about possible discrimination. The ministry referred to the issue as "apparent differential pricing" and demanded a comprehensive explanation to ensure transparency and fairness in how fares are determined.

This action follows recent revelations by a Delhi-based entrepreneur, who posted on X about the differential pricing observed between the two ride-hailing platforms, based on device type and battery levels. The issue gained significant attention in December when an X user posted a photo showing two phones displaying varying fares for the same location on the Uber app.