Ola and Uber Face Legal Scrutiny Over Alleged Differential Pricing on iPhone and Android
The Department of Consumer Affairs has issued notices to cab aggregators Ola and Uber, raising concerns about alleged differential pricing based on the type of mobile device used—specifically iPhones versus Android phones. The move follows widespread online discussion and complaints from users claiming they were charged higher fares for identical trips when booking through iPhones compared to Android devices.
Official Action Taken
Union Minister Pralhad Joshi confirmed that the Central Consumer Protection Authority (CCPA) has been tasked with investigating the matter thoroughly. “If differential pricing is proven, it would constitute a blatant disregard for consumer rights,” Joshi stated. He added that there will be “zero tolerance for consumer exploitation.”
The notices demand an explanation from Ola and Uber regarding these allegations. The companies have yet to issue a public response, but the situation has sparked significant debate among consumers about the fairness of pricing practices employed by tech-based service providers.
Social Media Sparks Investigation
The controversy gained traction after a social media user, @seriousfunnyguy, shared screenshots comparing Uber trip fares on an iPhone and an Android device. The post revealed a price disparity for the same pickup location, destination, and booking time, leading the user to rely on their daughter’s phone to secure lower fares. The viral post prompted other users to share similar experiences, amplifying calls for greater transparency in pricing algorithms.
Same pickup point, destination & time but 2 different phones get 2 different rates. It happens with me as I always get higher rates on my Uber as compared to my daughter’s phone. So most of the time, I request her to book my Uber. Does this happen with you also? What is the hack? pic.twitter.com/bFqMT0zZpW
— SUDHIR (@seriousfunnyguy) December 23, 2024
Minister Joshi, in a post on platform X, referred to the practice as “prima facie unfair trade” and called for similar checks in related sectors, such as food delivery and online ticketing services, to ensure consumers are not subjected to discriminatory pricing.
As a follow-up to the earlier observation of apparent #DifferentialPricing based on the different models of mobiles (#iPhones/ #Android) being used, Department of Consumer Affairs through the CCPA, has issued notices to major cab aggregators #Ola and #Uber, seeking their…
— Pralhad Joshi (@JoshiPralhad) January 23, 2025
Consumer Reactions and Implications
The ongoing investigation highlights the increasing need for transparency in algorithm-based pricing models. Consumers have expressed concern over whether such practices extend beyond cab services to other app-based platforms, underscoring the importance of regulatory oversight in protecting consumer interests.
As the inquiry unfolds, all eyes are on Ola and Uber to see how they address these allegations and what actions might follow from regulatory authorities.
