The Central Consumer Protection Authority (CCPA) on Thursday issued notices to cab aggregators Ola and Uber for charging different rates from consumers depending on their mobile phone operating system.
Consumer Affairs Minister Pralhad Joshi wrote on Twitter on Thursday, ‘Following initial reports of clearly differential pricing based on different models of mobile phones (iPhone/Android), the Department of Consumer Affairs has taken action against major CABs through CCPA. Notices have been issued to aggregators Ola and Uber and their answers have been sought.
Over the past few months, passengers using these aggregator platforms have complained about differences in rates for similar routes on their iPhone and Android devices. Cab-using passengers complained that there was a difference in fares when booking cabs using iPhone and Android phones.
Terming it an ‘unfair trade system’, Joshi took stock of the problem last month and ordered an inquiry into the matter.
He wrote on X, ‘Zero tolerance for consumer exploitation!’
“Prima facie this case appears to be an unfair trade arrangement, where cab-aggregators are accused of using differential pricing,” he wrote.
Joshi directed CCPA to conduct a comprehensive investigation in this matter. The minister had directed the regulator to look into the possibility of such a system in other sectors too like food delivery apps, online ticket booking apps etc.
Regarding this, Uber has said in its response, ‘We do not set prices based on the passenger’s phone manufacturer. We stand ready to work closely with CCPA to resolve any misunderstandings.