Cab aggregators Ola and Uber have firmly denied allegations that they set ride fares based on the type of mobile phone used to book rides, following notices issued by the Central Consumer Protection Authority (CCPA). These allegations stemmed from reports suggesting that the companies charged different fares for identical services, depending on whether the booking was made through an iPhone or an Android device. Both companies have assured full cooperation with the CCPA to resolve any confusion and reaffirmed their commitment to fair trade practices.
In their statement, an Ola Consumer spokesperson clarified, "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." The company emphasized that it had already clarified this matter to the CCPA and would continue working with the regulatory body to clear any misunderstanding. Uber echoed a similar stance, stating, "We do not set prices based on a rider's phone manufacturer. We look forward to working with the CCPA to clear up any misunderstanding."
The controversy first came to light after Consumer Affairs Minister Pralhad Joshi revealed that notices had been issued to the two companies regarding "differential pricing." Minister Joshi described this practice, if proven, as an "unfair trade practice" and a "blatant disregard for consumer rights." He also announced plans to expand the investigation, directing the CCPA to examine pricing strategies used by other sectors, including food delivery platforms and online ticketing services, to ensure transparency and protect consumer interests.
The issue gained widespread attention after a Delhi-based entrepreneur shared findings on X (formerly Twitter), comparing fares on Ola and Uber apps across devices with different operating systems and battery levels. His posts, supported by screenshots, suggested significant fare discrepancies between Android and iPhone users for identical rides. In December 2024, a similar post by another X user went viral, showing different fare quotes on two devices for the same destination on Uber. While Uber had then denied personalizing trip pricing based on phone manufacturers, citing factors like pick-up points, estimated time of arrival (ETA), and drop-off locations as possible causes, the incident sparked concerns about transparency in the companies’ pricing algorithms.
As these allegations gained traction, numerous social media users joined the conversation, sharing their own experiences of seemingly inconsistent pricing. Many consumers voiced concerns about potential discriminatory practices, calling for stricter oversight of app-based service providers to ensure fair pricing mechanisms. Although neither Apple nor Google has commented on the matter, the scrutiny has led to growing demands for transparency in the algorithms used by tech platforms to calculate prices.
Both Ola and Uber have reiterated their commitment to providing equal service to all customers and maintaining uniform pricing policies. Ola stated that its fare structure is determined based on factors such as distance, demand, and traffic conditions, while Uber attributed fare variations to external elements like ETA adjustments and real-time demand at specific locations.
The CCPA’s ongoing investigation now includes a broader examination of how app-based platforms set their prices, focusing on ensuring that consumers are not subjected to any form of bias or discrimination. The move is seen as a significant step toward addressing long-standing concerns about opaque pricing practices in the digital economy. Minister Joshi's call for an expanded inquiry into other sectors highlights the government’s intent to crack down on any unfair trade practices across industries, reinforcing consumer protection laws in the process.
If proven, these allegations could have far-reaching consequences for the gig economy, potentially leading to stricter regulations, higher accountability standards for companies, and greater scrutiny of pricing algorithms. For now, both Ola and Uber continue to deny the claims and maintain their willingness to cooperate fully with authorities, while the CCPA investigates further.
