Centre Issues Notice to Uber, Ola Over ‘Differential Pricing’ Based on Smartphone | Read

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.

In its notice, the CCPA asked the companies to explain their pricing methods and address concerns of potential discrimination. The ministry described the practice as “apparent differential pricing” and sought a detailed response 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 across different devices and battery levels.

Back in December, the matter gained traction after an X user had shared a picture of two phones purportedly showing different fares for a particular location on the Uber app.

As his post went viral, Uber responded to the allegations, denying that the pricing is based on the type of phone used. The company attributed any fare differences to variations in pick-up points, estimated time of arrival (ETA), and drop-off points, stating that it does not personalise trip pricing based on the rider’s mobile phone manufacturer.

However, other social media users soon joined the chorus, alleging that they were being charged different fares for identical rides when booking through Android and iOS devices.

The government intervened, with Union Minister of Consumer Affairs Pralhad Joshi ordering the CCPA to probe platforms like Ola, Uber and Rapido for “unfair trade practice” and a “blatant disregard” for consumers’ right to transparency.

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