The Central Consumer Protection Authority (CCPA) has issued notices to ride-hailing giants Ola and Uber, demanding explanations for alleged discriminatory pricing practices. The authority is investigating claims that customers using iPhones are being charged higher fares for identical rides compared to those using Android devices. Union Consumer Affairs Minister Pralhad Joshi confirmed the development.
The issue erupted after a social media post went viral, showcasing stark differences in fare quotes for the same route displayed on iPhone and Android devices. This sparked widespread outrage among users, with many reporting similar experiences with both Ola and Uber.
Joshi had previously called the practice of charging different fares based on the operating system a clear violation of consumer rights and a blatant disregard for transparency. He emphasised the government's firm stance against consumer exploitation and instructed the CCPA to conduct a thorough investigation into the matter.
In response to the accusations, Uber refuted claims that its pricing algorithm favors one operating system over another. The company stated that factors such as pick-up location, estimated arrival time, and drop-off destination significantly influence ride fares. They emphasised that their pricing model does not differentiate based on the type of phone a rider uses, as reported by TOI.
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