Ride-hailing company Ola Consumer on Friday said it does not adjust fares based on the operating system of the user's mobile device. Its global rival Uber had on Thursday denied similar allegations of differential pricing for Android and Apple phones.
Ola Consumer's statement was issued in response to a customer's claim that booking identical rides on Android and iOS devices resulted in different charges.
The resolution aims to clarify issues of price transparency, especially after reports of ongoing disparities in running charges between Android and iOS users. Dynamic pricing, a key feature of ride-hailing services, adapts fares in real time based on factors such as peak times, road conditions and vehicle availability.
On January 23, the Central Consumer Protection Authority (CCPA) issued notices to Ola and Uber over allegations of differential pricing based on the type of mobile phone used to book rides. The move was prompted by complaints from customers who reported seeing different prices for the same rides depending on whether they booked using an iPhone or Android device.
Union Consumer Affairs Minister Pralad Joshi announced on X via social media that inquiries have been initiated to address concerns about possible differential pricing practices by these major cab aggregators.
The CCPA notices came after Minister Joshi warned companies last month about the ministry's zero-tolerance policy on consumer-exploitative practices.
The minister expressed concern over possible unfair trade practices, specifically mentioning cab aggregators who use differential pricing based on various factors. Such practices, if confirmed, would be a violation of consumer rights to transparency and fair pricing as mentioned in a post by X.
“This, basically, appears to be an unfair trade practice where cab-aggregators are accused of using differential pricing based on the factors mentioned in the letter below. If so, this is a blatant disregard for consumers' right to know,” he said. In a post of X.
In response to a social media post, Uber clarified that changes in pick-up points, estimated arrival time and drop-off locations may result in price changes for rides. The company also ensured that traffic pricing is not personalized based on the rider's mobile phone manufacturer.