Differential pricing: Uber, Ola, Apple under scanner

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Differential pricing: Uber, Ola, Apple under scanner

Friday, 24 January 2025 | Rajesh Kumar | New Delhi

Differential pricing: Uber, Ola, Apple under scanner

Days after a Delhi-based entrepreneur shared his findings on differential pricing by two ride-hailing apps in a series of posts on X, comparing fares across different devices and battery levels, the Consumer Protection Authority (CCPA) has issued notices to tech giant Apple Inc. and cab aggregators Ola and Uber, seeking clarification on reports of alleged differential pricing based on the type of mobile device used to book rides. This comes after reports that the two companies appeared to charge different fares for the same service, depending on whether the customer was using an iPhone or an Android device.

“As a follow-up to the earlier observation of apparent #DifferentialPricing based on the different models of mobiles (#iPhones/ #Android) being used, the Department of Consumer Affairs, through the CCPA, has issued notices to major cab aggregators #Ola and #Uber, seeking their responses,” Union Minister for Consumers’ Affairs Prahlad Joshi said in a social media post.

Apple has been asked to respond to technical issues reported by iPhone users after a recent software update. Apple has been releasing updates, including iOS 18.0.1 in October, to address screen and camera freezing issues, and the latest 18.2.1 update for bug fixes.

In its notice, the CCPA asked the companies to explain their pricing methods and address concerns about potential discrimination. The ministry described the practice as “apparent differential pricing” and sought a detailed response to ensure transparency and fairness in fare calculations.

Recently, a survey by LocalCircles revealed that 60 percent of iPhone users experienced service problems, with call failures being the most significant issue. Nearly 90 percent of surveyed iPhone users attributed their difficulties directly to an iOS update, with no blame placed on Wi-Fi or mobile networks.

Last month, the internet was abuzz with speculation that cab aggregators charged different fares - higher for those making bookings on iPhones - for the same ride. However, other social media users soon joined the chorus, alleging they were being charged different fares for identical rides when booking through Android and iOS devices.

Joshi had emphasized “zero tolerance for consumer exploitation” and asked the CCPA to conduct a thorough inquiry into these allegations. He had described this practice as a “prima facie unfair trade practice” and a “blatant disregard” for consumers’ right to transparency.

This intervention was not the first of its kind; the department had previously issued a notice to Apple due to complaints registered on the National Consumer Helpline. Consumers had reported performance issues with iPhones following updates to iOS 18 and later versions. The department examined these grievances and requested a response from Apple to address the concerns raised by users.

The notices issued to Ola, Uber, and Apple highlighted a broader effort to ensure that companies adopt fair practices and do not exploit consumers. The actions taken by the CCPA were expected to bring clarity and resolution to these issues while reinforcing consumer trust in digital platforms and technology services.

India is one of Uber’s biggest markets outside the United States and Canada, where it is locked in a fierce battle with SoftBank-backed Ola, local rival Rapido, as well as all-electric ride-hailing app BluSmart.

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