Govt issues notice to Ola, Uber over price disparities on iPhone, Android

The Department of Consumer Affairs has taken action against prominent cab aggregators Ola and Uber over concerns of differential pricing based on the type of mobile device used by consumers.

Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy, Pralhad Joshi, announced the development via a post on X.

The Minister wrote,“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 responses. @jagograhakjago.”

Notably, the Central Consumer Protection Authority (CCPA) has raised questions regarding whether the platforms are engaging in pricing strategies that disadvantage users based on their device type.

Reports have suggested that fares might vary for identical routes and timings, depending on whether customers use an iPhone or an Android device.

In response to the CCPA notice, the cab aggregator Uber released a statement to the media, saying, "We do not set prices based on a rider's phone manufacturer. We look forward to working with the Central Consumer Protection Authority to clear up any misunderstanding."

Previously, it was reported that a social media user has alleged that Uber charges higher fares for Apple iPhone users compared to Android users. The claim was supported by a photograph shared online, displaying two separate mobile phones with differing rates for the same Uber Auto ride. The image shows the fare on the Android device as ₹290.79, while the Apple iPhone displays a higher charge of ₹342.47 for the identical journey.

Sudhir, a social media user, shared his experience of noticing fare discrepancies on Uber based on the device used. "Same pickup point, destination, and time, but two different phones show two different rates. I always seem to get higher fares on my Uber compared to my daughter's phone, so I often ask her to book my rides. Does this happen to you too? What’s the trick to avoid it?" he wrote.