8 in 10 app taxi users surveyed report Dark Patterns like Bait & Switch and Forced Action while 4 in 10 also confirm experiencing Drip Pricing; Price manipulation based on user information also reported but not classified by government as a dark pattern

December 28, 2024, New Delhi: Does the type of phone a consumer uses make a difference in the fare charged when booking an app-based taxi service? “Some commuters have noticed a curious disparity in cab fares displayed simultaneously on Android devices and iPhones for identical rides, which has left them wondering if pricing algorithms on ride-hailing apps are programmed to charge Apple users higher”. This dark pattern, not listed among the 13 identified by the Government of India, stems from how ride-hailing apps access hardware data of the users, which they are required to give consent to while installing an app.

Many app-based taxi users wonder why within minutes of trying to fix the exact location, which can be a tiresome procedure sometimes, the price surges by over INR 100 to INR 200. In fact, consumers have shared on social media that the price surge happens more when they are running out of battery charge on their phone. Many complain that when the consumer has committed to taking the service, the waiting time increases suddenly as no cab is to be found in your vicinity while upfront the app may show the nearest taxi to be 2 minutes away.

Cancellation of rides booked for no apparent reason are some of the other major problems faced. When observed closely, these are all pointers to some of the dark patterns noticed on eCommerce platforms, as listed by the Central Consumer Protection Authority in its notification on November 30th last year. Recently in a landmark decision, CCPA had directed Ola, a leading online ride-hailing platform, to implement a mechanism allowing consumers to choose their preferred method of refund—either directly to their bank account or via coupon—during the grievance redressal process.

LocalCircles has conducted a survey to gauge consumers’ experience of dark patterns like bait and switch, drip pricing or forced action when they are made to cancel a ride and end up with a penalty. The survey received 33,000 responses from app taxi users located in over 269 districts of the country. 61% respondents were men while 39% respondents were women. 48% respondents were from tier 1, 34% from tier 2 and 18% respondents were from tier 3, 4 and rural districts.

42% of app-based taxi users surveyed say they experienced hidden charges (other than taxes) which were not disclosed upfront but added when their ride transaction concluded

Many times, the passengers of app-based taxis are shocked when they are charged more than what was shown at the start of the journey. The drivers often plead helplessness in this matter as their mobile shows the final charges. The survey asked, “How often have you experienced with app-based taxi platforms that there are hidden charges (other than taxes) that are associated with different types of transactions which are not disclosed upfront, but they are charged when the transaction concludes?” The query received 11,148 responses with 13% indicating “very frequently”; 29% indicating “sometimes” and 29% indicating “rarely”. In addition, 12% of respondents indicated that they have “never” had to pay any hidden charges, while 25% did not give a clear response. To sum up, 42% of app-based taxi users surveyed say they have experienced hidden charges (other than taxes) levied which were not disclosed upfront but added when their ride transaction concluded.

84% app-based taxi users surveyed say that they have experienced forced action where they were made to cancel a ride where the platform or its driver/ vendor became unwilling to provide the ride/ service that they signed up for

Being forced to cancel a ride due to the app-based taxi driver’s reluctance to go to a particular destination or reluctance to accept digital payment or other reasons is nothing unusual. The survey asked, “How often have you experienced with app-based taxi platforms that you were forced to take a certain action like cancellation though it was the platform or its driver/ vendor who became unwilling to provide the ride/ service that they signed up for?” The query received 10,979 responses with 38% indicating that they have been forced to take certain action like cancellation ‘very frequently”; 46% of respondents indicated that this has happened “sometimes” and 8% indicated “rarely” has it happened. Just 4% of respondents stated it “never” happened with them and 4% gave no clear response. To sum up, 84% of app-based taxi users surveyed say that they have experienced forced action where they were made to cancel a ride where the platform or its driver/ vendor became unwilling to provide the ride/ service that they signed up for.

78% of app-based taxi users surveyed say that they have experience bait and switch approach by platforms where the waiting time that is shown to them before they start booking a ride is significantly less than the actual time it takes for the driver to reach them

A dark pattern of luring a customer with an attractive offer then suddenly making the product or service more expensive or delaying in fulfilling is something witnessed on app-based taxi service platforms. The survey asked, “How often have you experienced with app-based taxi platforms that the waiting time that is shown to you before you start booking a ride is significantly less than the actual time it took for the driver to reach your pickup location (Bait and Switch approach)?” The query received 10,960 responses with 61% indicating that such dark pattern is “very frequently” witnessed by them; 17% indicated that they have experienced it “sometimes” and 6% indicated that they have experienced it “very rarely”. Of the remaining respondents, 11% indicated that they were fortunate to have “never” experienced this dark pattern and 5% of respondents did not give a clear response. To sum up, 78% of app-based taxi users surveyed say that they have experienced bait and switch approaches by platforms where the waiting time that is shown to them before they start booking a ride is significantly less than the actual time it takes for the driver to reach them.

When looked at individually, use of dark patterns varies among various prominent app-based taxi platforms. Consumers have reported four or most Dark Patterns against Uber – Forced Action, Interface Interference, Bait & Switch and Drip Pricing. Three Dark Patterns have been reported against Ola - Forced Action, Bait & Switch and Drip Pricing. Consumer response shows that BluSmart, InDrive and Rapido use only one Dark Pattern- Drip Pricing.

Dark Patterns reported by consumers on App based Taxi Platforms

The recently reported practice of charging users based on device type used i.e. android versus iOS or device batter 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 Government of India.

In summary, 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/ vendor became unwilling to provide the ride/ 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. The survey shows 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.

LocalCircles urges the CCPA to include “Price Manipulation based on user information” in the list of dark patterns as this is one that is commonly observed across sectors. Also, the consumer regulator must enforce against the 13 dark patterns defined and the ones reported by the consumers in this study.

Survey Demographics

The survey received 33,000 responses from app taxi users located in over 269 districts of the country. 61% respondents were men while 39% respondents were women. 48% respondents were from tier 1, 34% from tier 2 and 18% respondents were from tier 3, 4 and rural districts. The survey was conducted via LocalCircles platform, and all participants were validated citizens who had to be registered with LocalCircles to participate in this survey.