CCPA Issues Notices To Ola, Uber Over Differential Pricing

SUMMARY

Consumer affairs minister Pralhad Joshi said that the CCPA has issued notices to Ola and Uber over differential pricing

This comes weeks after Joshi called differential pricing an “unfair trade practice” and a “blatant disregard” for consumers’ right to transparency

Earlier, many social media users pointed out that the fare for a ride to the same destination was higher for an iPhone device than that on Android phone

The Central Consumer Protection Authority (CCPA) has issued notices to cab aggregators Ola and Uber over differential pricing for Android and Apple devices.

“As a follow-up to the earlier observation of apparent Differential Pricing based on the different models of mobiles (iPhones/ Android) being used, Department of Consumer Affairs through the CCPA, has issued notices to major cab aggregators #Ola and #Uber, seeking their responses,” consumer affairs minister Pralhad Joshi said in a post on X.

The development comes weeks after Joshi called differential pricing an “unfair trade practice” and a “blatant disregard” for consumers’ right to transparency. At the time, he said that he had asked the consumer protection watchdog to submit a detailed report on the matter at the “earliest”.

The minister also asked the CCPA to look into sectors such as food deliveries, online ticketing, among others for the same issue.

The matter came to surface when a Linkedin user said that the price for a ride to the same destination was higher on an iPhone than an Android smartphone. As the issue snowballed into a huge controversy, Uber rejected the contention that the “observed fare differences” were due to the type of phone used.

The ride-hailing platform reiterated its earlier stance. Responding to Inc42’s queries on the latest development, a spokesperson of Uber said, “We do not set prices based on a rider’s phone manufacturer. We look forward to working with the Central Consumer Protection Authority to clear up any misunderstanding.”

Moreover, Ola also denied that they do not differentiate prices on their platform based on a user’s cellphone. “We have a homogenous pricing structure for all our customers and we do not differentiate based on the operating system of the user’s cellphone for identical rides. We have clarified the same to the Central Consumer Protection Authority today, and we will work with them to clear any misunderstanding in this regard,” an Ola Consumer spokesperson told Inc42.

In recent times, the consumer rights authority has sent notices to a number of big tech companies and startups.

Bhavish Aggarwal-led EV manufacturer Ola Electric is under the scanner of the CCPA over allegations of delays in providing service and deliveries, defective vehicle sales, and other customer complaints. In fact, the CCPA has sent multiple letters to the company requesting more information.

Earlier this month, the Karnataka High Court rejected Ola Electric’s plea to quash a notice issued by the consumer protection watchdog.

Earlier today, Joshi also said that the CCPA has issued a notice and sought the response of iPhone maker Apple after receiving complaints regarding performance issues following its iOS 18+ software update.

Updated | January 24 | The story has been updated to include Uber and Ola spokesperson’s comment.