Government Issues Notices To Ola, Uber On Allegations Of Charging Different Fares For iPhone And Android Users

The Ministry of Consumer Affairs on Thursday (23 January) sent notices to cab aggregators Ola and Uber, asking them to clarify allegations of differential pricing based on the type of mobile device used for booking rides.

The Central Consumer Protection Authority (CCPA) took action following reports that the two companies appeared to charge different fares for the same service, depending on whether the customer was using an iPhone or an Android device.

The CCPA, in its notice, asked detailed explanations of the pricing methodologies employed by the companies, and directed them to address concerns of potential discrimination.

Labeling the issue as "apparent differential pricing," the ministry sought a comprehensive response to ensure fairness and transparency in ride fare computations.

The government’s action followed findings shared by a Delhi-based entrepreneur, who compared fares across devices and battery levels and highlighted differential pricing by the two companies in a series of posts on X.

The issue first attracted public attention in December when an X user posted an image showing two phones displaying different fares for the same trip on the Uber app.

In response to the viral post, Uber dismissed the allegations, asserting that its pricing is not determined by the type of phone used.

Uber clarified that fare variations were due to factors like pick-up locations, estimated time of arrival (ETA), and drop-off points, and said that that it does not personalise trip pricing based on the rider's mobile phone manufacturer.

Despite Uber’s denial, several social media users alleged experiencing fare discrepancies for identical rides when using Android and iOS devices to book.

Union Minister of Consumer Affairs Pralhad Joshi stepped in, directing the CCPA to investigate Ola, Uber, and Rapido for alleged "unfair trade practices" and a "blatant disregard" for consumer rights to transparency.

Joshi said the government had a "zero tolerance for consumer exploitation" and directed the CCPA to conduct a thorough inquiry and submit a report as soon as possible.

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