Ola, Uber Alleged Worth Excess on iPhone, Android Underneath Investigation, Executive Tells Parliament

OLA and Uber, which provide cab services through the app, is being investigated for allegations of allegations of separate fare from customers using iPhone and Android devices. In response to the questions raised in the Lok Sabha, the government has given this information on Wednesday.

Consumer Affairs Minister, Pralhad Joshi said that both these cab service companies have denied allegations of separate pricing strategy based on the device. Ola and Uber have given this information in response to the letter sent by the Central Consumer Protection Authority (CCPA). Joshi said that due to the denial of the allegations of these two companies, the matter has been sent to DG (Investigation) for detailed investigation. Lok Sabha MPs Balashowry Vallabhaneni and Ravindra Vasantrao Chavan sought information from the government on measures to solve the problem of alleged difference in fare from the cab service companies from the government.

The case came to light when Localcircles revealed that customers are allegedly being charged from customers for similar rides booked through iPhone and Android devices. In the survey of Localcircles, more than 33,000 answers were taken from users using cabs through the app. It was revealed that alleged business methods are being used in this segment. In this survey, a large number of users had told that the fares increase by adjusting their pickup location. In some cases this increase ranges from 100 to 200 rupees.

Joshi said that under the Consumer Protection (e-commerce) rules, companies having online platforms are prohibited from earning profits by imposing unfair price for customers. These companies cannot violate their rights by discriminating between customer customers or arbitrarily classification of customers. In October last year, CCPA gave a show cause notice to large electric two-wheeler maker Ola Electrical for alleged violations of consumers’ rights, misleading advertisements and unfair business methods. The CCPA had initially investigated a large number of complaints against Ola Electric.