Good news: Indian ride-hailing company Ola Consumer has joined forces with Uber. Bad news: the Indian government has called out these two platforms for allegedly setting different prices based on the passenger’s phone model. This Ridesharing Forum story has more.
Differential pricing?
Shortly after Ola officially joined Uber in India, authorities reprimanded the two platforms over alleged differential prices for Android and Apple users among their passengers.
On Thursday, Ola and Uber received notices from a government consumer body in India, which Consumer Affairs Minister Pralhad Joshi spearheads, following reports from global media, alongside complaints from the general public, saying that Apple users are being charged more for the same ride than those passengers using Android phones. Whoa!
The official pricing structure of Uber requires consistency and is “based on the estimated length and duration of the trip,” not the type of phone the passenger is using.
On Wednesday, meanwhile, Joshi conducted a meeting with the official of the Consumer Affairs Ministry wherein he was appraised about the recent steps taken to protect the interests of consumers, including this one.
Joshi said there would be “zero tolerance for consumer exploitation.”
Both platforms deny the allegations
Well, right now, there’s no reason to cringe, especially since Uber has already released their statement saying, “We do not set prices based on a rider’s phone manufacturer. We look forward to working with [the Central Consumer Protection Authority] to clear up any misunderstanding.”
Ola also defended itself, saying it has a “homogenous pricing structure for all” customers and does not differentiate “based on the operating system of the user’s cellphone for identical rides.”
The Ola spokesperson added, “We have clarified the same to the [CCPA] today, and we will work with them to clear any misunderstanding in this regard.”
No official statement has been released from the sides of Apple and Google.
About Ola, Uber
Ola is the Indian counterpart of Uber. This major ride-hailing company headquartered in this South Asian nation is regarded as the country’s largest mobility platform, allowing its users to book various transportation options – not just cabs and cars, but also auto-rickshaws, and bike taxis via their mobile app.
Aside from operating across multiple cities in India, it also operates in international locations, such as Australia and New Zealand.
Meanwhile, Uber also works generally the same way as Ola, but this mobility service is beyond rides, but also where you can request food and packages to be delivered to your doorsteps using its dedicated app.
The app connects you with drivers and calculates fares based on distance and demand, or surge, not based on your phone’s model.
Here’s how Uber works. First, you must tell Uber your location and destination. The app will then estimate the cost of the ride. Remember that while it doesn’t change most of the time, there are instances when you may need to pair more or less.
Uber will then match your journey with a driver. You’ll hop in and upon reaching your destination, you must pay for the ride mostly through the app.