Earlier, many social media users pointed out that the fare for a ride to the same destination was higher for an iPhone device than that on Android phone.
The Central Consumer Protection Authority (CCPA) has issued notices to cab aggregators Ola and Uber over differential pricing for Android and Apple devices.
“As a follow-up to the earlier observation of apparent Differential Pricing 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,”
consumer affairs minister Pralhad Joshi said in a post on X.
The development comes weeks after Joshi called differential pricing an “unfair trade practice” and a “blatant disregard” for consumers’ right to transparency. At the time, he said that he had asked the consumer protection watchdog to submit a detailed report on the matter at the “earliest”.
The minister also asked the CCPA to look into sectors such as food deliveries, online ticketing, among others for the same issue.
The matter came to surface when a Linkedin user said that the price for a ride to the same destination was higher on an iPhone than an Android smartphone. 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.
In recent times, the consumer rights authority has sent notices to a number of big tech companies and startups.
The minister 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,"
Times of India quoted C Ambigapathy, managing director of ride-hailing platform Fastrack in Chennai, as saying.
Earlier, the CCI Chairperson, Ravneet Kaur, stated that AI could trigger dynamic pricing and personalized pricing strategies which could lead to discrimination among customers.
Sources: IInc42, Times of India