Price Manipulation by Apps: Govt Asks CCPA To Conduct Detailed Inquiry on Differential Pricing
Moneylife Digital Team 03 January 2025
Taking cognisance of outrage on social media about allegations of price manipulations by app aggregators, including apps used for ride-hailing (cab or taxi), food delivery and online ticket booking, and use of differential pricing based on the mobile device, the Union ministry of consumer affairs, food and public distribution has asked the central consumer protection authority (CCPA) to conduct a detailed inquiry and submit a report at the earliest. 
 
Responding to media reports and a post by Moneylife managing editor Sucheta Dalal on X, Union minister of consumer affairs, food and public distribution says, "This prima facie looks like Unfair Trade Practice where the cab-aggregators are alleged to be using differential pricing based on the factors mentioned in the article below. If so, this is a blatant disregard to consumer's right to know. I have directed @jagograhakjago (the department of consumer affairs) 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 and online ticket booking apps."
 
 
In a report last week, Times of India (ToI) mentioned about some commuters reporting higher cab fares on iPhones compared to Android for identical rides in Chennai. This raises suspicions about ride-hailing apps charging iPhone users more, the report says. 
 
Quoting experts, ToI says the disparities stem from how ride-hailing apps access hardware data and users are required to give consent while installing an app.
 
A survey conducted by community platform Local Circles found that Uber uses most dark patterns—forced action, interface interference, bait & switch and drip pricing. "Ola uses three dark patterns - forced action, bait & switch and drip pricing. When it comes to BluSmart, InDrive and Rapido, all three use drip pricing just like Uber and Ola."
 
"The recently reported practice of charging users based on device type used i.e. Android versus iOS or device battery remaining, must also be classified as a dark pattern called 'price manipulation based on user information' however, it is currently not classified in the 13 dark patterns outlined by the government of India," LocalCircles says.
 
According to the survey, 42% of app-based taxi users surveyed say they have experienced hidden charges (other than taxes) which were not disclosed upfront. A bigger problem is that 84% of respondents have experienced forced action where they were made to cancel a ride when the platform or its driver or vendor became unwilling to provide the ride or service they had signed up for. 
 
In addition, 78% of respondents say they have experienced bait and switch approaches by platforms where the waiting time shown to them before booking a ride is significantly less than the actual time it takes for the driver to reach them. "This can be a big problem when the consumer has to reach a destination on time to either board a plane, train or bus, or has an important appointment. It appears that government notification and warning of dark patterns is not sufficient as consumers remain vulnerable," LocalCircles added.
Comments
parimalshah1
2 weeks ago
Unless a hefty fine is imposed every time such violation is confirmed the situation will not improve.
adityag
3 weeks ago
Apple charges higher royalty for 3rd party software and demands a greater cut of App store revenues (30% if I'm not mistaken). And also their app store rules are obnoxious. Obviously, app developers need to recoup that by passing on the cost to consumers. How is this even controversial?

If you ask me, it's totally fair IMHO. The other word for this is called free market capitalism. It all depends on the rules and policies of a particular platform, be it Android or iOS or even Windows/Linux/OS. Or anything else for that matter.

I switched from Mac to PC long back because of this price arbitrage and I don't regret it. Apple is overrated in the age of AI anyway. And so is Android. I'd switch to a dumb phone if closed captioning worked on it (maybe one day this will be a reality, and I'm optimistic).

I don't even use ride-hailing apps. I use public transport (including yellow taxis/autos). It's quicker and I don't mind haggling or agreeing to whatever the driver asks for. It amounts to the same thing, minus the waiting time and the cancellation drama. Yes, there are several downsides to it, but It's a tradeoff I'm willing to make.

Addition by subtraction. The less/fewer one has in life, the richer one life is. Fewer things to complain about. Life is about tradeoffs.
comdtmceme2024
Replied to adityag comment 2 weeks ago
Wise words AdityaG. Addition by subtraction. Remove stupidity from life, and you become at least a lil more intelligent. ))
iaminprabhu
3 weeks ago
I have found 2 people standing next to each other & going to same location getting DIFFERENT FARES !

These all are clear cut MANIPULATIONS & LOOT Scoot nature of Cab Apps
Meenal Mamdani
3 weeks ago
Looks manipulation for sure. Does the driver of the taxi get more if the fare charged is higher?
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