Uber, Ola Deny Phone Model-Based Pricing Claims Amid Government's Notices

New Delhi: App-based cab service aggregators Uber and Ola have rejected claims that they charge varying prices based on users' phone models. They clarified the issue on Friday saying they did not set fares based on a user's phone model after the government sent notices to them over alleged differential pricing based on the type of mobile device used to book rides. In a statement, Uber said, "We do not differentiate prices for riders based on their phone models or any other personal characteristics." Ola too issued a similar response, stating that their pricing algorithm is based on factors like distance, traffic, and demand, but not phone models. The denial comes after the government issued a notice to the companies seeking clarification on the allegations.

According to Ola, they 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". Uber echoed a similar statement, saying they do not set prices based on a rider's phone manufacturer.

The Central Consumer Protection Authority (CCPA) sent notices to Ola and Uber after reports emerged that the companies were charging different fares for the same service based on whether the customer was using an iPhone or an Android device.

Consumer Affairs Minister Pralhad Joshi termed differential pricing an "unfair trade practice" that was a "blatant disregard" for consumer rights. The minister also directed the CCPA to investigate differential pricing strategies used by other sectors, including food delivery and online ticketing portals.

The issue ignited 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 iPhone devices.