The Department of Consumer Affairs has issued notices to major cab aggregators Ola and Uber following allegations of differential pricing based on the type of mobile device used by consumers. The development, which has sparked significant debate, was announced by Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy, Pralhad Joshi, in a post on X (formerly Twitter).
The controversy began after reports and social media posts suggested that cab fares for identical routes and timings were higher when booked through iPhones compared to Android devices. This revelation has prompted the Central Consumer Protection Authority (CCPA) to investigate whether such pricing practices disadvantage users based on their device type, which could constitute an unfair trade practice.
In his statement, Minister Joshi described the allegations as a “prima facie unfair trade practice” and emphasised the government’s commitment to consumer rights, stating there would be “zero tolerance for consumer exploitation.” The CCPA has sought responses from both Ola and Uber to address the concerns.
The issue gained traction after a viral social media post shared screenshots of Uber fares differing significantly for the same trip when booked on iOS and Android devices. Similar discrepancies were later reported for Ola fares. While some users expressed outrage over the alleged practice, Uber has denied the claims, stating, “Uber does not personalise trip pricing based on a rider’s cell phone manufacturer.” The company attributed the differences in fares to variations in pick-up points, estimated times of arrival, and drop-off locations, according to media reports.
This is not the first instance of alleged device-based price discrimination in India. Last year, a user flagged similar discrepancies on Flipkart, where the price of a Mokobara cabin suitcase was reportedly higher on the platform’s iOS app compared to its Android app. The post triggered widespread discussion, though no formal action was taken against the platform at the time. As the investigation unfolds, the allegations against Ola and Uber raise critical questions about transparency and fairness in pricing practices. The government’s response underscores its focus on consumer protection and its intent to ensure equitable treatment for all users, irrespective of the devices they use.