CCPA To Probe Ride-Hailing Apps Over Differential Pricing

Consumer affairs minister Pralhad Joshi has directed the Central Consumer Protection Authority (CCPA) to probe ride-hailing platforms for alleged differential pricing tactics. 

In a post on X, Joshi said that charging different fares for identical rides on Android and Apple devices by ride-hailing apps prima facie amounts to “unfair trade practice”. Terming the tactics a “blatant disregard” for consumers’ right to transparency, the minister said he has asked the consumer protection watchdog to submit a detailed report on the matter at the “earliest”.

“Zero tolerance for consumer exploitation!! This Prima Facie looks like unfair trade practice where the cab-aggregators are alleged to be using differential pricing based on the factors mentioned… I have directed  @jagograhakjago through CCPA to conduct a detailed inquiry into this and submit a report at the earliest,” said Joshi in the post on X. 

Not stopping there, the minister said he has also directed the CCPA to look into similar instances in other sectors such as food deliveries, online ticketing, among others. 

Joshi was responding to a post which included a news clipping about disparities in cab fares for identical rides on Android and iPhone smartphones. The report said that rides to the same destination from three different locations in Chennai cost iPhone users higher than Android customers. 

This comes a day after a user, in a post on LinkedIn, underlined a significant price difference while booking the same trip on Uber using an Android smartphone and an iPhone. As the issue snowballed into a controversy, Uber rejected the contention that the “observed fare differences” were due to the type of phone used. 

“Hi there, multiple differences in these two rides impact the prices. The pick-up point, ETA, and drop-off point on these requests vary, which will cause different fares. Uber does not personalize trip pricing based on a rider’s cell phone manufacturer,” the company responded.

The development comes at a time when the CCPA has cracked its whip on startups and consumer internet platforms for flouting consumer protection rules. In October, it launched a detailed probe into numerous consumer complaints filed against electric vehicle maker Ola Electric.

In the same month, it issued notices to 11 ecommerce and quick commerce companies, including Blinkit, Zepto, Meesho, among others, for flouting metrology norms. Prior to that, the CCPA directed the quick commerce players, in April, to prove their ‘10-minute’ delivery claims.