• The Daily Hints
• 23 Jan, 2025

The central government has issue a notice to app based cab services Ola and Uber following allegations that they charge different fares for the same route depending on the booking is made from an iPhone or an Android device. This move comes after numerous complaints from consumers.

Context

Ap based cab services Ola and Uber are under scrutiny after several users reported discrepancies in fares based on the type of phone used for booking. Reports suggest that users with iPhones are charged higher fares compared to Android users for the same route and distance.

The Consumer Affairs Department has taken note of these allegations and issued notices to both companies. Union Minister Prahlad Joshi confirmed the action, stating, “Complaints have surfaced that fare differences are observed based on the device used for booking, whether it's an iPhone or an Android phone. The matter is being investigated, and explanations have been sought from Ola and Uber.”

This isn’t the first time such allegations have surfaced. About a month ago Minister Joshi had warned the companies against unfair pricing practices. He had directed the Consumer Protection Department to look into complaints that customers were being exploited by differential pricing strategies.

Specific Complaints

Several users on social media shared screenshots highlighting the fare disparity. For example

- For the same route an iPhone user was shown a fare of Rs 342.

- Meanwhile an Android user was charged Rs 290 for the same trip.

These discrepancies have left consumers questioning the fairness of the pricing model adopted by these companies.

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Government Action

Reacting swiftly to the complaints, the central government issued formal notices to Ola and Uber. They have been asked to provide a detailed explanation for the alleged discriminatory pricing model.

Additionally the government has hinted at expanding its investigation to other online service providers, including food delivery platforms and ticket booking companies, as similar complaints of unfair pricing practices have emerged in those sectors too.

The allegations against Ola and Uber have raised concerns about transparency and fairness in pricing strategies for app-based services. The central government’s intervention could pave the way for stricter consumer protection measures, ensuring equality for all users regardless of their devices.