The Department of Consumer Affairs has issued notices to major cab aggregators Ola and Uber over speculation of differential pricing, i.e., customers are quoted different taxi fares based on the make of the mobile phone – iPhone or Android – used to book the vehicle.
“As a follow-up to the earlier observation of apparent differential pricing based on different models of mobiles – iPhone / Android – being used, Department of Consumer Affairs, through the CCPA (or Central Consumer Protection Authority), has issued notices to major cab aggregators Ola and Uber, seeking their responses,” Union Minister Pralhad Joshi said.
Ola and Uber have been directed to respond to the notices.
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…
— Pralhad Joshi (@JoshiPralhad) January 23, 2025
Mr Joshi had last month warned concerned companies there will be “zero tolerance for consumer exploitation”, and asked the CCPA to conduct a thorough investigation. He said the practice of differential pricing, if it existed, was a “blatant disregard” for consumers’ rights.
“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 disregard for consumers’ rights to know,” he said in a post on X.
Mr Joshi said he had also directed checks into other sectors, such as food delivery and online ticketing apps, to see if similar issues were red-flagged.
Last month the internet was abuzz with speculation that cab aggregators charged different fares – higher for those making bookings on iPhones – for the same ride.
Same pickup point, destination & time but 2 different phones get 2 different rates. It happens with me as I always get higher rates on my Uber as compared to my daughter’s phone. So most of the time, I request her to book my Uber. Does this happen with you also? What is the hack? pic.twitter.com/bFqMT0zZpW
— SUDHIR (@seriousfunnyguy) December 23, 2024
The storm broke after an X user – @seriousfunnyguy – posted a screenshot of an iPhone and an Android device, side-by-side, showing two rates for the same Uber trip.
“Same pickup point, destination and time… but two different phones get two different rates. It happens with me as I always get higher rates on my Uber as compared to my daughter’s phone. So, most of the time, I request her to book my Uber. Does this happen with you also?”
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