Government Issues Notice to Ola and Uber for Varying Prices Among Commuters
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Synopsis
The Indian government has issued formal notices to Ola and Uber regarding their pricing strategies, which differ based on whether commuters use Android or iPhone devices. Minister Pralhad Joshi has emphasized the need for fair consumer practices and warned against exploitation.
Key Takeaways
- Government scrutiny of Ola and Uber's pricing practices.
- Notices issued over differential pricing for Android and iPhone users.
- Minister warns of zero tolerance for consumer exploitation.
- Investigation into related industries like online ticketing.
- Social media outrage over pricing discrepancies.
New Delhi, Jan 23 (NationPress) The Department of Consumer Affairs has issued notices to prominent taxi services Ola and Uber regarding the discrepancies in pricing for commuters using Android versus iPhone devices. Union Minister of Consumer Affairs, Pralhad Joshi, announced this on Thursday.
Minister Joshi shared via a post on the X social media platform that the Department, through the Central Consumer Protection Authority (CCPA), has reached out to these ride-hailing platforms.
“In response to previous observations indicating apparent differential pricing based on mobile device models - Android/iPhone - the CCPA has formally contacted major taxi aggregators Ola and Uber for their input,” the minister stated.
Both Uber and Ola have been instructed to provide answers to the notices issued by the Department.
In a separate announcement, the minister indicated that following complaints received on the National Consumer Helpline (NCH) regarding performance issues with iPhones after the iOS 18+ update, the Department has also issued a notice to Apple through the CCPA, requesting clarification.
Last month, Minister Joshi urged the CCPA to conduct a thorough investigation and warned the implicated companies that there would be “zero tolerance for consumer exploitation.” He asserted that if differential pricing practices were indeed being utilized, it represented a “blatant disregard” for consumer rights.
“This appears to be an unfair trade practice, with cab aggregators allegedly implementing different price points based on the aforementioned criteria. If true, this is a clear violation of consumers' rights to be informed,” he posted on X.
The Union Minister has also mandated inquiries into other sectors, including online ticketing and food delivery services, to see if similar issues have been reported.
Online discussions were widespread last month regarding cab services charging varied rates based on the device used, with iPhone users facing higher costs for bookings.
