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The Central Consumer Protection Authority (CCPA) took action after reports that the two companies charged different fares for the same service depending on whether the customer was using an iPhone or Android device. Is it happening or not?
The Consumer Affairs Ministry on Thursday issued a notice to cab aggregators Ola and Uber over differential pricing. The ministry sought clarification on reports of alleged differential pricing based on the type of mobile device used to book a ride. The Central Consumer Protection Authority (CCPA) took action after reports that the two companies charged different fares for the same service depending on whether the customer was using an iPhone or Android device. Is it happening or not?
In its notice, the CCPA asked the companies to explain their pricing practices and address concerns of potential discrimination. The ministry described the practice as blatant differential pricing and sought detailed feedback to ensure transparency and fairness in fare calculations. The move comes days after a Delhi-based entrepreneur shared his findings on differential pricing by the two ride-hailing apps in a series of posts on X after comparing fares on different devices and battery levels.
The matter came to a head in December when an X user shared a photo of two phones on the Uber app, purportedly showing different fares for a particular location. As soon as his post went viral, Uber responded to the allegations by denying that pricing is based on the type of phone used. The company attributed any differences in fares to variations in pick-up point, estimated time of arrival (ETA) and drop-off point, explaining that it personalized trip pricing based on the rider’s mobile phone manufacturer. Doesn’t.
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