Ride-hailing firm Ola Consumer on Friday it does not adjust pricing based on the operating system of a user’s mobile device. Its global rival Uber had denied similar allegations of differential pricing for Android and Apple phones on Thursday.
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 regarding pricing transparency, especially after reports of perceived discrepancies in ride fares between Android and iOS users. Dynamic pricing, a key feature of ride-hailing services, adapts fares in real time based on factors like peak hours, route conditions, and vehicle availability.
On January 23, notices were sent by the Central Consumer Protection Authority (CCPA) to ride-hailing services Ola and Uber due to allegations of differential pricing based on the type of mobile phone used to book rides. This action was prompted by complaints from consumers who reported seeing varying prices for the same rides depending on whether they booked using an iPhone or an Android device.Â
Union Minister of Consumer Affairs Pralhad Joshi announced on X, via social media, that inquiries have been initiated 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 companies last month regarding the ministry’s zero tolerance policy towards practices that exploit consumers.
The minister expressed concern about potential unfair trade practices, specifically mentioning cab-aggregators using differential pricing based on various factors. Such practices, if confirmed, would be a violation of consumers’ rights to transparency and fair pricing, as stated in a post on X.
“This, prima facie, looks like unfair trade practice where the cab-aggregators are alleged to be using differential pricing based on the factors mentioned in the article below. If so, this is 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 pick-up points, estimated time of arrival, and drop-off locations can lead to variations in prices for rides. The company assured that trip pricing is not personalized based on a rider’s cell phone manufacturer.