Do Cab and Food Delivery Apps Charge Higher on iPhones? Govt to Investigate Claims
Reports of differential pricing by cab and food delivery apps for iPhone and Android users have sparked a heated debate on social media. Allegations suggest that the same service may cost more on iOS devices compared to Android. These claims have caught the attention of the government, with Pralhad Joshi announcing a probe into potential unfair trade practices.
Evidence of Price Discrepancies
The Times of India conducted a comparative analysis of cab fares using an iPhone and an Android phone in Chennai. The investigation revealed higher fares on iPhones for identical rides across three routes:
- Madipakkam to Phoenix Mall Velachery: ₹195 (Android) vs. ₹260 (iPhone)
- Avadi to Chennai Airport: ₹961 (Android) vs. ₹1,010 (iPhone)
- T Nagar to Egmore: ₹180 (Android) vs. ₹344 (iPhone)
While intriguing, this data is not conclusive. Factors such as real-time demand, distance, and estimated travel time could play a role in the disparities. Ride-hailing company Uber denied personalizing prices based on device type, attributing differences to these variables. Ola declined to comment.
Public Reaction and Government Response
The report drew reactions from prominent voices. Sucheta Dalal, Managing Editor at Moneylife India, highlighted broader issues with dynamic pricing in apps, where repeated checks for fares can inflate the price.
In response, Union Minister Pralhad Joshi called the allegations a prima facie case of unfair trade practices. He emphasized zero tolerance for consumer exploitation and directed the Central Consumer Protection Authority (CCPA) to investigate. The inquiry will also cover other sectors, including food delivery and online ticketing platforms.
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
A Growing Concern
The findings highlight the importance of transparency in pricing algorithms. While companies often justify dynamic pricing as a response to supply and demand, the perception of unfair practices can erode consumer trust. The government’s probe aims to ensure that consumers’ rights are upheld, and any misuse of technology for differential pricing is addressed.
This investigation could set a precedent for app-based service providers, signaling a shift toward greater accountability and fairness in the digital marketplace.
