Ola, Uber get notice from Centre for alleged fare discrimination
This came after customers complained that the cab aggregators were charging different fares for similar rides based on users’ phone types.
The Ministry of Consumer Affairs has issued notices to cab aggregators Ola and Uber over allegations of fare discrimination, announced Union minister Pralhad Joshi on Thursday.
The action came after users complained that the aggregators were charging different fares for similar rides based on phone type.
“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 [Central Consumer Protection Authority], has issued notices to major cab aggregators Ola and Uber, seeking their responses,” Joshi, the Union Minister for Consumer Affairs, said in a social media post.
The Central Consumer Protection Authority is seeking explanations from both companies regarding their pricing mechanisms and has asked them to address concerns of potential discrimination. The ministry described the practice as “apparent differential pricing” and emphasised the need for transparency and fairness in fare calculations.
The allegations surfaced after a Delhi-based entrepreneur shared posts on X, comparing fares on Android and iOS devices and highlighting inconsistencies. The issue got more attention in December when another user shared a photo showing differing fares for the same destination on two devices using the Uber app.
Uber denied personalising fares based on mobile phone types and clarified that pricing differences stem from variations in pick-up points, estimated time of arrival and drop-off points. However, several social media users contested the claim and reported experiences of differential pricing.
The government, taking note of the complaints, launched an investigation, with Joshi calling the alleged practice a “prima facie unfair trade practice” and a “blatant disregard” for consumers’ right to transparency.
Josi reiterated the government’s “zero tolerance for consumer exploitation” and directed the Central Consumer Protection Authority to conduct a thorough inquiry and submit its findings promptly.
