Centre issues notice to Ola, Uber for alleged fare discrimination
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Union Minister Pralhad Joshi stated on Thursday that the Ministry of Consumer Affairs had issued letters to cab aggregators Ola and Uber in response to claims of fare discrimination. The measure was taken after consumers complained that aggregators were charging different fees 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, the 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, Scroll.in reported.
The Central Consumer Protection Authority has urged both companies to explain their pricing systems and address concerns about potential discrimination. The ministry defined the practice as "apparent differential pricing" and underlined the importance of openness and fairness in cost calculations.
The allegations came after a Delhi-based entrepreneur made posts on X comparing Android and iOS fares and pointing out irregularities. The problem gained traction in December when another user published a photo of varying fares for the same place on two devices using the Uber app.
Uber denied personalising charges based on mobile phone type and highlighted that pricing disparities are caused by differences in pick-up locations, projected arrival times, and drop-off locations. However, some social media users disputed the assertion and shared their experiences with unequal pricing.
The government initiated an investigation after receiving complaints, with Joshi describing the alleged conduct as a "prima facie unfair trade practice" and a "blatant disregard" for customers' right to transparency.
Josi emphasised the government's "zero tolerance for consumer exploitation" and instructed the Central Consumer Protection Authority to conduct an in-depth investigation and report back as soon as possible.