This development follows a recent viral incident where a Delhi-based entrepreneur highlighted fare discrepancies in a series of posts on X.
New Delhi, January 11, 2025: The Ministry of Consumer Affairs has issued notices to ride-hailing giants Uber and Ola, seeking explanations over allegations of "dual pricing" based on the type of mobile device used to book rides.
The Central Consumer Protection Authority (CCPA) initiated the action after reports surfaced claiming that fares varied depending on whether the customer used an iPhone or an Android device to access the apps.
Notice Highlights and Allegations
In the notice, the CCPA demanded detailed responses from the companies to clarify their pricing methods and address concerns over potential discrimination. The ministry described the practice as "apparent differential pricing" and emphasized the importance of transparency and fairness in fare calculations.
This development follows a recent viral incident where a Delhi-based entrepreneur highlighted fare discrepancies in a series of posts on X (formerly Twitter). The user compared ride fares across devices and even noted differences based on battery levels, sparking widespread debate online.
Similar claims surfaced in December when a social media user posted a photo showing differing Uber fares for the same route on two phones.
Uber and Ola’s Stance
While Uber quickly responded to the December claims, denying that fare variations were linked to phone models, it attributed discrepancies to factors such as pick-up locations, estimated time of arrival (ETA), and drop-off points. "We do not personalise trip pricing based on the mobile phone manufacturer," the company stated.
Despite this, several other users reported experiencing similar inconsistencies, renewing calls for a government inquiry.
Government Action and Minister’s Response
Union Consumer Affairs Minister Pralhad Joshi has taken a firm stance on the matter. Labeling the alleged practice as "unfair trade" and a violation of consumers' right to transparency, Joshi ordered a full probe into the pricing practices of platforms like Ola, Uber, and Rapido.
“The government has zero tolerance for consumer exploitation. We are committed to ensuring that no platform engages in practices that harm consumer trust,” Joshi said.
The CCPA is expected to submit a detailed report on the issue in the coming weeks, paving the way for potential regulatory measures if discrepancies are confirmed.
