Govt issues notice to Uber, Ola as different fares shown on Android and iPhone

The Ministry of Consumer Affairs has issued notices to major cab aggregators, Ola and Uber, after receiving complaints of differential pricing based on the mobile operating system used to book rides. The Department of Consumer Affairs, via the Central Consumer Protection Authority (CCPA), is seeking formal responses from both companies following allegations that iPhone users are charged higher fares than Android users for the same ride, despite having identical pick-up points, destinations, and times.

The issue first gained attention when users reported fare discrepancies on platforms such as Uber and Ola. In particular, social media posts highlighted significant differences in pricing for identical trips booked on iPhone and Android devices. These complaints triggered the Ministry of Consumer Affairs to investigate the possibility of unfair trade practices and assess whether pricing algorithms are being manipulated based on the operating system of the user's phone.

Union Consumer Affairs Minister Pralhad Joshi confirmed the issuance of notices to both companies, highlighting that the CCPA’s investigation aims to determine whether the differential pricing is a violation of consumer rights. Minister Joshi referred to the allegations as "prima facie unfair trade practices" and warned that there would be zero tolerance for any form of consumer exploitation. He also directed the CCPA to conduct a detailed investigation into pricing patterns across digital platforms and sectors, including food delivery services and online ticketing apps, where similar complaints of device-based price discrimination may arise.

In response to these allegations, Uber stated that its pricing algorithm does not differentiate based on the mobile operating system. The company clarified that fare differences are caused by a range of factors, including variations in the pick-up point, estimated time of arrival (ETA), and drop-off location. Uber emphasized that these trip details, rather than the type of device used to book the ride, are responsible for the differences in pricing. The company reiterated that it does not personalize pricing based on the phone model.

While Uber has provided a response, Ola has yet to issue a public statement addressing the allegations. The investigation into these claims of differential pricing is part of a broader scrutiny into digital pricing practices, which have drawn attention in recent months. Minister Joshi has urged regulatory bodies to investigate the fairness of pricing models used by tech companies, with a particular focus on ensuring transparency and protecting consumers' rights.

This investigation follows a similar concern raised by consumers in October 2024 when a discrepancy in prices between Android and iOS users was noted on the Flipkart app. In that instance, a product was found to be priced higher on the iOS version of the app compared to the Android version, further fueling concerns about the practice of device-based pricing. The CCPA’s investigation into Ola and Uber may set a precedent for more extensive scrutiny of pricing models across various digital platforms.