Ola, Uber get CCPA notice for alleged differential pricing based on Android, iOS phone

The Central Consumer Protection Authority (CCPA) has issued notices to ride-hailing platforms Ola and Uber over alleged unfair pricing practices, including differential fares based on users' mobile operating systems, Consumer Affairs Minister Pralhad Joshi said on Thursday.

"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," Joshi posted on X.

The issue surfaced last month after commuters reported disparities in fares displayed on Android and iOS devices for identical rides.

A Times of India report suggested that searches conducted simultaneously on both platforms in Chennai consistently showed higher fares on iPhones, particularly for short distances.

While the discrepancies were not conclusively proven to be intentional, Joshi had described the practice as a "prima facie unfair trade practice" and a "blatant disregard" for consumers' right to transparency.

He had emphasised "zero tolerance for consumer exploitation" and asked CCPA to conduct a thorough enquiry into these allegations.

Industry experts suggest that ride-hailing apps may use advanced pricing algorithms powered by machine learning frameworks to tailor fares dynamically, considering variables such as device type and user behaviour.

"It is child's play for companies to tweak fares based on hardware details while hiding behind the 'dynamic pricing algorithm' explanation," TOI quoted C Ambigapathy, managing director of ride-hailing platform Fastrack in Chennai, as saying.