Zero Tolerance for Consumer Exploitation: Union Minister Pralhad Joshi Orders Probe into Ride-Hailing Apps’ Price Disparities
Union Minister of Consumer Affairs Pralhad Joshi has emphasized “zero tolerance for consumer exploitation” following allegations of price discrimination between iPhone and Android users by ride-hailing apps.
New Delhi: Union Minister of Consumer Affairs Pralhad Joshi has emphasized “zero tolerance for consumer exploitation” following allegations of price discrimination between iPhone and Android users by ride-hailing apps.
The Minister was responding to media reports suggesting that algorithms used by cab aggregators charge Apple users higher fares compared to Android users.
Joshi, taking note of the situation, stated, “This prima facie looks like an unfair trade practice where the cab aggregators are alleged to be using Differential Pricing based on the factors mentioned in the article. If so, this is a blatant disregard of the consumer’s right to know.”
The Union Minister has directed the Central Consumer Protection Authority (CCPA) to conduct a thorough investigation into these pricing discrepancies. Furthermore, he extended the inquiry to other sectors, including food delivery platforms and online ticket booking services, to ensure fair pricing practices across the board.
Also Read: Adani Enterprises Ltd’s share has potential upside of 57.8 pc in 24 months: Ventura Securities
“I have directed @jagograhakjago through CCPA to conduct a detailed inquiry into this and submit a report at the earliest. Have asked the department to look into other sectors as well, like food delivery apps, online ticket booking apps, etc.,” Joshi posted on the social media platform X.
Table of Contents
Allegations of Pricing Discrepancies Spark Consumer Concerns
The investigation follows reports of price variations between platforms for the same journey. In one example highlighted by Niraali Parekh, Founder and Creative Director of Bokap Designs, a colleague noticed a significant price difference when booking an Uber ride simultaneously on Android and iPhone devices.
Parekh stated in a LinkedIn post, “On Android, the fare was Rs 290.79, and on iPhone, the fare jumped to Rs 342.47.”
The revelation has sparked widespread debate. While some argue that the pricing strategy is an inevitable consequence of data-driven business models, others claim such practices exploit consumer trust. Similar allegations have surfaced about pricing strategies on platforms like MakeMyTrip when booking hotels.
Government Action Ensures Consumer Rights
The government’s proactive approach to investigating alleged unfair trade practices reflects its commitment to consumer protection. The findings of the CCPA inquiry are expected to provide clarity on the extent of these practices and ensure that businesses operate transparently and ethically.
Stay tuned for updates on this developing story.
