Cab aggregators Ola and Uber have been slapped with a government notice over concerns of differential pricing on their apps depending on the device they are using.
Pralhad Joshi, the Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy, tweeted Thursday that his department, through the Central Consumer Protection Authority (CCPA) has sent a notice to the two companies seeking their response.
“As a follow-up to the earlier observation of apparent differential pricing 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,” Joshi tweeted.
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
Several users, with videos, complained on social media that iPhone users were charged higher prices for the same ride than those using Android phones.
Last year, Joshi, while replying to a news report about differential pricing, had said there was “zero tolerance for consumer exploitation”.
“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 wrote, adding that he had directed his ministry through CCPA to conduct a detailed inquiry into this and submit a report at the earliest.
Citizens also flagged a similar issue regarding food delivery and quick-commerce apps as well.
The minister also directed the department of Consumer Affairs to “look into other sectors” such as food delivery apps and online ticket booking apps.
Different Uber, Ola pricing for Android, iPhones?
Videos and posts by social media users showed that iPhone users were shown a higher estimated fare than Android users while booking a ride on Ola or Uber.
So Ola and Uber prices are different on iPhones and Android Phones. Same story with quick commerce and food delivery apps. Apparently, Android users often get more discounts because they’re seen as deal-hunters, while iPhone users are labelled as “rich” and less price-sensitive,… pic.twitter.com/JhcpbHrwZz
— Itu Rathore (@iturathore) December 26, 2024
Another user, while responding to Prahlad Joshi’s tweet today, shared a tweet from last month showing same prices for Uber on both Android and iPhone.
Debunking the #ios vs #Android debate for app pricing on @Uber_India – same source, same destination and most important, using SAME account on both devices. No difference at all!!#AppPricing #Uber @ramsundaramTOI pic.twitter.com/wr0RgcdD7M
— Somil Agrawal (@somilagrawal) December 26, 2024
While Uber had denied that the operating systems play a factor in cab ride prices and attributed it to availability and peak timings, Ola had not responded to the videos.
Both Ola and Uber are yet to respond to the government notice.
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