Ola and Uber, two largest players in India’s ride hailing sector, have now been hit by notices from the Central Consumer Protection Authority (CCPA). This comes after complaints were raised regarding differential pricing based on the type of mobile operating system used by consumers. It is alleged that the two platforms charge higher fares for users booking rides through Apple iPhones compared to Android devices for identical trips.
The controversy was first revealed after numerous commuters took to social media to share evidence of pricing discrepancies between iPhones and Android devices. Users posted screenshots and videos, highlighting that ride fares displayed on iOS were consistently higher than those shown on Android for identical trips booked at the same time.
The claims of differential pricing were not confined to social media. A probe by The Times of India last month corroborated these complaints, showing evidence of fare differences between iOS and Android users. This investigation revealed that identical rides booked on the same platforms simultaneously often displayed significantly higher costs on iOS devices.
Reacting to these allegations, Pralhad Joshi, Union Minister for Consumer Affairs, Food and Public Distribution, confirmed the government’s actions in a post on X (formerly Twitter). The minister stated that the Department of Consumer Affairs, through the CCPA, has formally issued notices to Ola and Uber, seeking their responses to the allegations.
“As a follow-up to the earlier observation of apparent differential pricing 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 said in his post on the erstwhile Twitter.
As for now, the CCPA’s notices to Ola and Uber aim to investigate whether these pricing practices violate the Consumer Protection Act, 2019, which protects consumers from unfair trade practices. The Act also mandates that businesses provide accurate and transparent information about their services, ensuring that consumers are not misled or exploited.
Joshi has also instructed the CCPA to examine pricing practices in other digital service sectors, such as food delivery and online ticketing platforms. These industries, like ride-hailing, heavily rely on algorithmic pricing models to determine costs.
Media reports state that the alleged pricing disparities may be linked to how ride-hailing apps collect and use data from users’ devices. During installation, these apps often request permissions to access certain device information, such as the operating system and model. This data, combined with other factors, may be used to determine pricing strategies by the ride-hailing platforms.
Currently, the ride-hailing industry employs dynamic pricing algorithms, which adjust fares based on demand, location, traffic conditions, and other variables. However, as per the allegations, the type of device used to book the rides — basically, whether the user is on an iPhone or Android — is yet another factor that determines the fare calculations.
