Government issues notices to Ola, Uber over alleged pricing disparities

The Ministry of Consumer Affairs has issued notices to cab aggregators Ola and Uber, seeking clarification on alleged differential pricing based on the type of mobile device used for booking rides. The Central Consumer Protection Authority (CCPA) initiated the action after reports suggested that ride fares varied depending on whether customers used an iPhone or an Android device.

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The CCPA's notice seeks an explanation from both companies regarding their pricing models to address concerns of potential discrimination. The ministry termed the issue "apparent differential pricing" and demanded a detailed response to ensure fair and transparent fare calculations.

This comes after a Delhi-based entrepreneur highlighted the issue on social media, comparing fares on different devices and battery levels. A viral post from December had similarly shown fare differences between two phones for the same ride on the Uber app.

Uber denied allegations of device-based pricing, attributing variations to factors like pick-up points, estimated time of arrival (ETA), and drop-off locations. However, several social media users have claimed to experience similar discrepancies, sparking widespread concern.

Union Minister of Consumer Affairs Pralhad Joshi ordered the CCPA to probe platforms like Ola, Uber, and Rapido, citing "unfair trade practices" and a lack of transparency. The government has emphasized a zero-tolerance stance on consumer exploitation and demanded a swift investigation.