 "CCPA notices sent to Ola, Uber over Android-iOS fare differences: Joshi")
The Consumer Protection Authority (CCPA) has issued notices to major cab aggregators Ola and Uber following allegations of differential pricing for identical rides based on users' mobile operating systems — Android or iOS. The announcement was made by Union Consumer Affairs Minister Pralhad Joshi on Thursday (January 23).
"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," Joshi wrote in a post on X.
The issue stirred widespread discussion after a social media post went viral, showing screenshots of Uber charging significantly different fares for the same ride booked on iPhones and Android devices. Later, social media users highlighted similar discrepancies with Ola fares, which also appeared to be higher for iOS users booking identical routes.
Describing the practice as a "prima facie unfair trade practice" and a "blatant disregard" for consumers' right to transparency, Joshi had earlier underscored the government's "zero tolerance for consumer exploitation" and directed the CCPA to conduct a thorough investigation.
Differential pricing: Not a standalone case!
This is not the first instance of alleged operating system-based price discrimination in India. In October last year, a social media post by an X user, Saurabh Sharma, highlighted similar discrepancies on Flipkart, where the price of the same product — a Mokobara cabin suitcase — was higher on iOS than on Android. "Android vs iOS – different prices on Flipkart app. Same Mokobara cabin suitcase costs Rs 4,119 on Flipkart's android app vs Rs 4,799 on iOS app," Sharma had written, sharing screenshots to back his claim.
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Meanwhile, responding to the latest allegations, Uber denied that its pricing algorithm discriminates based on users’ devices. "Hi there, multiple differences in these two rides impact the prices. The pick-up point, ETA, and drop-off point on these requests vary, which will cause different fares. Uber does not personalise trip pricing based on a rider's cell phone manufacturer," the company clarified. Uber denies implementing phone model-based pricing Uber said it does not set ride prices based on a user's phone model, shortly after an Indian government body alleged that the ride-hailing giant and its domestic rival Ola use differential pricing for Android and Apple phones. An Uber spokesperson told Reuters, "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."