Ola, Uber Get Notice Over Differential-Pricing Issue On Android, iPhone
The Department of Consumer Affairs has issued notices to ride-hailing majors Ola and Uber following complaints about apparent differential pricing based on the type of mobile device used by commuters.
Consumer Affairs Minister Pralhad Joshi confirmed the action in a recent post on social media platform X, stating that the notices were issued as a follow-up to observations of fare discrepancies between Android and iPhone users.
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…
January 23, 2025The issue has been gaining significant attention after a survey by LocalCircles last month revealed that many commuters experienced significant fare differences for identical rides when booked through Android devices versus iPhones. Some users raised concerns that the pricing algorithms of both Ola and Uber might be skewed, potentially charging Apple device users higher fares.
The survey, which collected over 33,000 responses from taxi-app users across India, uncovered troubling patterns within the ride-hailing industry. Commuters pointed to what they called "dark patterns", including bait-and-switch tactics, forced actions and hidden charges that appeared to manipulate pricing. A large portion of respondents expressed concerns that fare discrepancies were more pronounced when users adjusted pickup locations, with fares often increasing by Rs 100 to Rs 200 in some cases.
Additionally, 42% of respondents reported encountering hidden charges not disclosed upfront but added to the total fare once the ride concludes.
Several commuters also complained about the apparent surge in waiting times. According to their reports, while the app initially indicated a nearby driver, the actual driver was located much farther away, causing delays and frustration.
The Department of Consumer Affairs is now seeking responses from Ola and Uber on these allegations, which, if proven, could potentially lead to stricter regulations and accountability in the ride-hailing sector.
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