Ola, Uber deny differential pricing allegations based on phone models

Ride-hailing companies Ola Consumer and Uber have denied the allegations of differential pricing on Android and Apple smartphones, saying they do not set fares based on the user's phone models. "We have a homogenous pricing structure for all our customers and we do not differentiate based on the operating system of the user's cellphone for identical rides," an Ola Consumer spokesperson told global news agency Reuters.

Ola Consumer says it has today conveyed it to the Central Consumer Protection Authority (CCPA), which issued notices to Ola, along with Uber, for the alleged unfair trade practices. Uber has also reportedly said it'll work with the CCPA to clear "misunderstanding" while clarifying that it does not set ride fares based on a user's phone manufacturer.

The Department of Consumer Affairs through the Central Consumer Protection Authority (CCPA) on Thursday sought Ola and Uber's responses on the issue of differential pricing. "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," Union Minister of Consumer Affairs Pralhad Joshi said in a post on X.

The Union minister last month had warned the companies on differential pricing, saying that the government has a "zero tolerance" policy for "customer exploitation" by companies. The minister had said prima facie it looks like an "unfair trade practice", where the cab aggregators are alleged to be using differential pricing. "If so, this is a blatant disregard to the consumer’s right to know. I have directed @jagograhakjago through CCPA to conduct a detailed inquiry into this and submit a report at the earliest. Have asked the department to look into other sectors as well like, food delivery apps, online ticket booking apps etc," he said.

Notably, social media is abuzz with videos of users sharing differential pricing on the ride-hailing apps for the same route on Android and iOS smartphones. Social media platforms like X and YouTube are filled with videos of users getting charged higher for iPhones as compared to Android for the same route. Some are saying that this practice is prevalent across the e-commerce ecosystem. In the wake of these pricing discrepancies, the government has issued notices over the issue.