Dark patterns found in Uber, Ola, and other ride-hailing apps
What's the story
A recent survey by social media research platform LocalCircles has revealed the rampant use of deceptive tactics or "dark patterns" by app-based taxi services in India. The study was conducted with over 33,000 participants from 269 districts across the country. It found that users often face hidden charges (42%), forced cancelations (84%), and misleading wait times (78%) on platforms like Uber, BluSmart, Ola, InDrive, and Rapido.
Deception details
A closer look at the deceptive tactics
The survey highlighted specific dark patterns employed by leading ride-hailing platforms. Uber was found to use four such tactics: forced action, interface interference, bait & switch, and drip pricing. Ola was reported for three dark patterns - forced action, bait & switch, and drip pricing. Meanwhile, BluSmart, InDrive and Rapido were mainly reported for drip pricing.
Pricing concerns
Price manipulation: Growing concern among users
The survey also flagged price manipulation on the basis of user information like device type (Android vs iOS) or battery levels. Some users reported higher fares for the same rides shown on iPhones as compared to Android devices, and price surges when their phone battery is low. While this isn't yet a dark pattern under the 13 categories identified by the Government of India, LocalCircles has urged the Central Consumer Protection Authority (CCPA) to add it to the list.
User impact
User experiences and real-life impact of deceptive practices
Many users recounted experiences of sudden price surges, cancelations without clear reasons, and inflated waiting times after booking. These problems often leave consumers stranded, particularly when they need to reach critical destinations like airports or railway stations. For example, 61% of respondents said they often faced bait & switch tactics where the app initially shows a short waiting time only for the driver to take much longer.
Regulatory action
Call for stricter regulations against deceptive practices
The CCPA recently asked Ola to give consumers an option to choose their preferred refund method - directly to their bank account or through a coupon - during grievance redressal. However, the survey shows that such measures are not enough to curb the menace of dark patterns. LocalCircles has asked CCPA to impose stricter rules against the 13 identified dark patterns and include "Price Manipulation based on User Information" in the list.
Step
CCPA urged to investigate pricing discrepancies
Consumer Affairs Minister Pralhad Joshi has recently called out ride-hailing apps for charging different fares for identical rides on Android and Apple devices, describing it as a "prima facie unfair trade practice." In a post on X, Joshi revealed that he has directed the CCPA to investigate pricing discrepancies not just in ride-hailing, but also in food delivery and online ticketing. He was responding to a TOI report, which explored the "theory" that ride-hailing algorithms charge Apple users higher fares.
Twitter Post
Take a look at Joshi's post
Zero tolerance for consumer exploitation!!
— Pralhad Joshi (@JoshiPralhad) December 26, 2024
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 blatant dis-regard to Consumer’s right to know.… https://t.co/Iq7FXE6ROc