The Department of Consumer Affairs has issued notices to major ride-hailing platforms Ola and Uber regarding allegations of differential pricing based on the type of mobile phone used to book rides, specifically iPhones and Android devices.
Investigation Triggered by Consumer Reports
The issue gained traction when a social media user shared screenshots showing different fare quotes for the same trip booked on an iPhone and an Android device. The post highlighted higher rates on the iPhone compared to the Android device, raising concerns about discriminatory pricing practices.
Union Minister Pralhad Joshi confirmed that the Central Consumer Protection Authority (CCPA) is investigating the matter. He warned of “zero tolerance for consumer exploitation” and described the alleged practice as a potential “blatant disregard for consumers’ rights.”
Wider Implications for Tech-Driven Services
The investigation may extend beyond cab aggregators to include other sectors like food delivery and online ticketing platforms, where similar issues could exist. The minister emphasized the importance of protecting consumer rights and ensuring fairness across all tech-driven service platforms.
Response from Ola and Uber Pending
Ola and Uber have been directed to respond to the notices, but no official statements have been made by either company so far. The allegations, if proven true, could lead to regulatory action and increased scrutiny of their pricing algorithms.
Public Reaction
The allegations have sparked widespread discussion on social media, with users sharing personal experiences of perceived pricing discrepancies. Some have called for greater transparency in how fares are calculated, while others have expressed concerns about potential biases in algorithms used by these platforms.
Next Steps
The CCPA’s findings will determine whether differential pricing constitutes an unfair trade practice and if stricter regulations are required for app-based services. The case also underscores the growing need for algorithm accountability in digital services to ensure equitable treatment of consumers
