HIGHLIGHTS

The Centre responds to rising complaints about fare discrepancies between Ola and Uber based on the device used.

Uber has denied any pricing variations linked to the phone type, citing other factors influencing costs.

This issue gained visibility after users posted screenshots illustrating price differences for the same rides on Android and iOS platforms.

In response to a wave of complaints surfaced on social media platforms regarding the disparities in pricing for rides on Ola and Uber when accessed via Android devices versus iPhones, the central government has issued a formal notice to both ride-hailing services. This action follows a request for clarification from Consumer Affairs Minister Prahlad Joshi, on the social network X, regarding the existence of these claims.

“Following the observation of noticeable #DifferentialPricing based on different mobile models (#iPhones/ #Android) being utilized, the Department of Consumer Affairs, through the CCPA, has issued notices to prominent cab aggregators #Ola and #Uber, requesting their explanations,” Joshi remarked in his post on X.

The discrepancy issue began to surface widely after users began sharing photographic evidence of fare differences for identical rides when booked through the Android and iOS apps of these services.

Minister Joshi has taken a firm stance against consumer exploitation, emphasizing that such practices will not be tolerated. In alignment with his directive, the ministry has instructed the Central Consumer Protection Authority (CCPA) to embark on a detailed inquiry into these serious allegations that have gained considerable attention. Reports indicate that such practices could potentially be considered “prima facie unfair trade practice” and demonstrate a “blatant disregard” for consumer rights.

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The situation escalated when an entrepreneur shared a viral post on X, outlining the different charges for travel to the same destination using the Uber app. This prompted numerous other users to come forward with similar experiences, amplifying the conversation around pricing discrepancies.

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To their credit, Uber was quite prompt in responding to the viral post, clarifying that, “Hello there, the price variations are influenced by multiple factors concerning these rides, including the pick-up, estimated time of arrival (ETA), and drop-off points, resulting in varying fares. Uber does not modify pricing based on the type of mobile device a rider uses.”

As of now, both Ola and Uber have yet to put forth a formal statement regarding the notice issued by the government. For ongoing updates and official communications from Ola and Uber, please keep an eye on Digit.