Lucknow: The ride-hailing platforms have been subjected to a probe by the Indian government due to the claims of charging different rates for passengers based on the mobile device they use to book a ride. According to the reports, users booking rides via Android devices are charged a lower fare than those who use Apple iPhones for the same route.
Prahald Joshi, the Minister of Consumer Affairs, reacted to the concerning incident on his social media handle by announcing the investigation, calling it “a gross disrespect for consumer rights.” He instructed the Central Consumer Protection Authority (CCPA) to undertake a detailed examination of these mismatches and return to him as soon as possible with the results. Joshi stated that at first sight these were signs of unfair business practices.
As users have spoken out about the price differences encountered when booking Uber and Ola rides, Twitter has become a melting pot of complaints. Several users included pictures depicting a wide price gap between the two apps, as much as ₹50 or more, despite identical distances and destinations. A user even expressed, “My Uber shows higher prices all the time compared to my daughter’s Android phone, which is why I have to ask her to book for me.” According to specialists in this field, Uber and the like may have used time-varying price algorithms that dynamically change the fees according to the app user’s status. According to other observers, the providers of the ride-and-fares would see the owners of iPhones as more wealthy people, and as such, they are prepared to accept higher prices.
This discrimination in pricing is not exclusive to ride-hailing applications; food delivery apps and cinema ticket booking platforms are also contenders. Moreover, the CCPA investigation of these sectors will be carried out, which will ensure that all consumers are treated fairly irrespective of the device they use. Ex-Consumer Affairs Secretary Rohit Kumar condemned these changes, arguing that companies shouldn’t dispose of user data freely without consent. He reaffirmed that earlier warnings were given to taxi booking companies on this very issue.
With the investigation continuing its course, the consequences on operational changes in ride-hailing and delivery services in India are unknown. The findings from this case could result in these establishments introducing new policies for their fare settings, depending on the technology used.