MC EXCLUSIVE Government turns to domain experts as probe into Ola, Uber fare algorithm drags

This deeper examination follows earlier regulatory flashpoints in the sector.

The government’s investigation into Ola and Uber’s pricing algorithms has likely slowed due to the challenges in technically decoding how fares are calculated, a stark contrast to the swift action taken against Rapido over misleading cashback claims.

The delays come at a time when regulators are tightening scrutiny on the entire ride-hailing ecosystem, citing rising consumer complaints and opaque platform practices.

“The Director General (Investigation) is now likely to bring in domain experts to examine whether the ride-hailing majors have engaged in unfair trade practices,” a senior government official told Moneycontrol.

The official added that while the government is convinced “there are lapses,” any quasi-judicial action must be backed by “robust technical findings.”

Ola and Uber did not respond to Moneycontrol’s queries at the time of publishing the story. The story will be updated later with comments.

In August, Rapido, faced a Rs 10-lakh penalty for misleading advertisements. The regulator held that claims such as “Guaranteed Auto” and “Auto in 5 mins or get Rs 50” were not adequately substantiated and concealed material conditions, violating consumer protection norms.

Regulatory actions in the past

This deeper examination follows earlier regulatory flashpoints in the sector.

In May 2025, the Central Consumer Protection Authority (CCPA) issued a notice to Uber India over its “advance tip” feature, which lets users offer a tip before confirming a ride to increase the chances of getting a ride.

The notice came after Consumer Affairs Minister Pralhad Joshi criticised the tool as “unethical” and “exploitative,” prompting wider calls for stricter oversight.

Moneycontrol’s research later found that nearly all major mobility platforms, Uber, Ola, Namma Yatri and Rapido, introduced similar tipping or add-on incentives, especially during peak demand or bad weather, triggering further scrutiny.

In October 2025, the CCPA directed Ola to implement consumer-friendly changes, including giving riders the option of refunds back to bank accounts instead of only coupon codes and ensuring proper receipts for auto rides.