The initial discussion on price difference started when the price for an Auto ride was compared by an Uber user in Chennai and the photo was posted on X. Another X user from Mumbai showed the price for an auto ride for an iPhone user was Rs.342 and for Android, it was Rs.290 for the same drop location. The post went viral and users from all the Metro cities started to post the price difference for the rides on social Platforms. The same price difference was observed for short-distance rides on both the Ola and Uber app with the price being inflated for iPhone users when compared to Android.
After the initial reports of price differences, Uber responded by saying that the price differences were due to variations in pick-up points, estimated time of arrival (ETA), and drop-off location, saying that they do not personalize pricing based on the rider’s phone manufacturer.
Pralhad Joshi Minister of Consumer Affairs asked for a detailed report on the complaints and said unfair trade practices are a blatant disregard for consumer rights for transparency and the minister stressed on government’s zero tolerance on consumer exploitation.
Even after statements from the minister and an initial rebuttal from the company, Still, videos and posts on social media highlighting the issue were being made, Ola and Uber being the biggest and most used ride-hailing platforms in the country the allegations sparked a nationwide debate.
Government’s Response to the Complaints
Department of Consumer Affairs using CCPA issued a notice asking for a response from Ola and Uber after receiving reports from users of different prices being shown to users for different operating systems.
Uber’s Response to the Notice
Uber responded to the CCPA notice by stating that they do not set the price of the rides based on the phone manufacturer’s company and expressed a willingness to work with the Central Consumer Protection Authority (CCPA). Ola is yet to respond to the notice and complaints.
E-commerce platforms’ Price difference for iPhone and Android
After finding out about the price differences of ride-hailing services. iPhone users of Zepto too started complaining about inflated prices when compared to Android users. A Woman from Banglore was ordering 500 grams of grapes but the price of them on an iPhone was 146 compared to Rs.65 on an Android device.
Zepto has yet to make any statement on the reports of inflated prices for iPhone users.
These practices have created a storm on social media with users asking for a proper investigation on online platforms like Ride-hailing, e-commerce, and online ticket-booking portals.
As videos and posts on social platforms are being shared Zepto’s pricing for iPhone users is more than that for Android users for the same order and delivery location. Pralhad Joshi Minister of Consumer Affairs, Food and Public Distribution of India via his X account also asked the concerned department to look into whether any unfair trade practices are done by other sectors as well like, food delivery apps, online ticket booking apps, etc.
These allegations bring to light the algorithmic pricing used by these companies to give out dynamic pricing. These practices can have devastating effects on consumer trust. Cases like these highlight the importance of regulation for consumer-based apps.
Written by Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
