The CCPA will Investigate Ride-Hailing Apps for Having Different Prices

On December 26, Union Consumer Affairs Minister Pralhad Joshi ordered the Central Consumer Protection Authority (CCPA) to conduct a thorough investigation into the discrepancy in taxi fares that ride-hailing platforms display simultaneously on Android and iOS devices for identical rides. This was in response to a media report about the issue. He has instructed the consumer affairs division to investigate additional industries, like online ticket booking and food delivery applications.

The minister tweeted, tagging the media report, that the taxi aggregators are allegedly employing differential pricing based on the factors listed in the article below, which on the surface appears to be an unfair trading practice. If that is the case, this is a flagrant violation of the consumer's right to know. "I have instructed @jagograhakjago through CCPA to carry out a thorough investigation into this and submit a report as soon as possible," he added. I've requested that the department investigate more areas, such as apps for online ticket booking and food delivery. Authorities stated that they will gather the proof and ask the taxi aggregators and other platforms that deal with online ticketing and food delivery for their reaction.

Reports’ Citing & Uber’s Response

Joshi was replying to a post that featured a news clip about how the prices of taxi rides on Android and iPhone handsets differed. According to the report's citing, iPhone users pay more than Android users for transportation to the same destination from three distinct sites in Chennai. This comes a day after a user highlighted a notable price variation when using an Android and an iPhone to book the same ride on Uber in a post on LinkedIn. Uber denied the claim that the "observed fare differences" were caused by the type of phone used as the matter grew into a controversy. The aggregator clarified that the pricing is affected by the numerous variations between these two rides. These requests have distinct pick-up, ETA, and drop-off locations, which will result in different fares. Uber does not adjust trip costs according to the manufacturer of a rider's mobile device.

Startups Under the Strict Scanner

The CCPA has recently taken action against startups and consumer internet platforms for violating consumer protection regulations. This development has occurred at a particular juncture. It began a thorough investigation into many customer complaints against Ola Electric, an electric vehicle manufacturer, in October. Eleven rapid commerce and e-commerce businesses, including Blinkit, Zepto, and Meesho, were given notices for violating metrology standards in the same month. Before that, in April, the CCPA ordered the swift commerce companies to provide evidence for their "10-minute" delivery claims.

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StartupTalkyNitin Konde