On Friday, ride-hailing company OLA Consumer said it does not adjust prices based on the operating system of a user’s mobile device. Global rival Uber on Thursday denied similar allegations of differential pricing for Android and Apple phones.
Ola Consumer’s statement was issued in response to a consumer’s claim that booking identical rides on Android and iOS devices resulted in different fares.
The clarification aims to address concerns about pricing transparency, particularly after reports of perceived discrepancies in driving rates between Android and iOS users. Dynamic pricing, a key feature of refit services, adapts rates in real time based on factors such as peak times, road conditions and vehicle availability.
On January 23, the notices were issued by the Central Consumer Protection Authority (CCPA) to ride services Ola and Uber over allegations of differential pricing based on the type of mobile phone used to book rides. The action was prompted by complaints from consumers who said they saw varying prices for the same rides depending on whether they booked using an iPhone or Android device.
Union Consumer Affairs Minister Pralhad Joshi announced on X, via social media, that investigations have been launched to address concerns of possible differential pricing practices by these major CAB aggregators.
The CCPA notices were issued after Minister Joshi issued a warning to businesses last month regarding the ministry’s zero-tolerance policy towards practices that exploit consumers.
The minister expressed concern over potential unfair trade practices, specifically mentioning CAB aggregators using differential pricing based on various factors. Such practices, if confirmed, would constitute a violation of consumers’ rights to transparency and fair prices, as noted in a post on X.
“This, Prima Facie, looks like unfair trade practices where booth aggregators would be used by differential pricing based on the factors mentioned in the article below. If so, it is a blatant disregard for consumers’ rights to know,” he said in a post on X.
In response to a social media post, Uber explained that differences in pickup points, estimated arrival time, and drop-off locations can cause variations in ride prices. The company assured that travel prices are not personalized based on a rider’s cell phone manufacturer.
