The Indian government has placed ride-hailing giants Ola and Uber under scrutiny following allegations of fare disparities based on a user’s phone operating system. On March 12, Union Minister for Consumer Affairs Pralhad Joshi informed the Lok Sabha that the Central Consumer Protection Authority (CCPA) had issued notices to both companies on January 10, 2025, after complaints suggested that iPhone users were being charged more than Android users for identical rides.
Ola-Uber Under Probe for Alleged Unfair Pricing Based on Device Type
Responding to concerns raised by MPs Balashowry Vallabhaneni and Ravindra Chavan, the minister stated that Ola and Uber have denied the allegations. However, the matter has been referred to the Directorate General for further investigation. If proven, such pricing discrimination could be classified as an unfair trade practice under India’s Consumer Protection Act, 2019, and the E-commerce Rules, 2020.
Reports suggest that for the same ride—identical pick-up and drop locations, estimated travel time, and conditions—fares may vary depending on whether the booking was made through an iPhone or an Android device. The government has been increasingly enforcing regulations in the digital marketplace, aiming to prevent price manipulation and ensure transparency in algorithm-driven pricing.
CCPA Expands Crackdown on Digital Platforms and Consumer Rights Violations
This case is part of broader regulatory efforts by the CCPA to hold digital and tech platforms accountable. On January 23, Mint reported that the CCPA had also issued a notice to Apple Inc. regarding alleged performance issues in certain iPhone models after a software update. Additionally, the watchdog has taken action against electric vehicle manufacturers, coaching institutes, travel-booking platforms, consumer durables companies, and social media influencers for misleading consumers.
As India tightens its grip on digital services, this investigation will serve as a test case for regulating algorithm-driven pricing models and ensuring consumer protection in an increasingly digital economy.
Summary:
The Indian government is investigating Ola and Uber for alleged fare disparities based on phone operating systems. The CCPA issued notices, and the matter is under further probe. This is part of broader regulatory efforts, including actions against Apple and other digital platforms, to ensure consumer protection and fair business practices.
