Ride-hailing Companies Deny Differential Pricing Based on Mobile Operating Systems

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Ride-hailing Companies Deny Differential Pricing Based on Mobile Operating Systems

The ride-hailing company Ola Consumer has refuted claims that it implements different pricing strategies for users based on whether they book rides through Android or iOS devices. The response came after a consumer alleged that booking the same rides on different operating systems resulted in distinct fares, raising concerns about transparency in pricing within the industry. Despite reports indicating discrepancies in fares between Android and iOS users, Ola Consumer emphasized that its pricing is not influenced by the type of mobile device used by customers.

The Central Consumer Protection Authority took action by sending notices to both Ola and Uber following complaints from consumers regarding perceived differences in ride prices depending on the mobile phone platform. The inquiries initiated by the Union Minister of Consumer Affairs, Pralhad Joshi, aim to address suspicions of differential pricing practices by these major cab aggregators. Minister Joshi warned against unfair trade practices last month, emphasizing a zero-tolerance policy towards companies that exploit consumers and violate transparency and fair pricing principles.

In a statement shared on social media, Minister Joshi expressed concerns about potential violations of consumers' rights, highlighting the use of differential pricing based on various factors as a worrying trend in the industry. He described the alleged practice of cab aggregators adjusting prices based on factors like a user's operating system as a blatant disregard for consumers' rights to fair and transparent pricing. However, Uber clarified that differences in ride prices could be attributed to variables like pick-up points, estimated time of arrival, and drop-off locations rather than personalized pricing based on a rider's mobile device manufacturer.