
Notices to Uber, Ola, Rapido over Alleged Differential Pricing
NEW DELHI, Jan 23: The Union Ministry of Consumer Affairs has issued notices to cab aggregators Ola and Uber as Centre sought clarification on reports of alleged differential pricing based on the type of mobile device used to book rides.
The action by Central Consumer Protection Authority (CCPA) comes after reports that Ola and Uber appeared to charge different fares for the same service, depending on whether a user was booking on an iPhone or an Android device. The CCPA has asked both the companies to explain their pricing methods and address concerns of potential discrimination and described the practice as “apparent differential pricing.”
A Delhi-based entrepreneur had shared on social media platform X that the two ride-hailing apps were charging different prices for cabs after comparing fares across different devices and battery levels. The post gained traction as several users shared the same experience.
Uber denied that the pricing is based on the type of phone used and the company said the fare differences can be due to variations in pick-up points, estimated time of arrival (ETA) and drop-off points.
At the time, Union Minister of Consumer Affairs Pralhad Joshi ordered the CCPA to probe platforms like Ola, Uber and Rapido and said the Centre had “zero tolerance for consumer exploitation.”
(Manas Dasgupta)