India's Consumer Protection Authority (CCPA) has officially launched an investigation into major ride-hailing companies Ola and Uber. The inquiry stems from allegations that these companies are charging different fares for identical rides based on the user's mobile operating system—Android or iOS. This announcement was made by Pralhad Joshi, Consumer Affairs Minister, Government of India, on Thursday, January 23rd.

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…

— Pralhad Joshi (@JoshiPralhad) January 23, 2025

Official Confirmation from the Ministry

Minister Joshi confirmed the investigation via a post on X (formerly Twitter). He stated that the Department of Consumer Affairs, acting through the CCPA, has formally issued notices to both Ola and Uber. These notices demand responses from the companies regarding earlier observations of apparent differential pricing based on mobile device models, specifically iPhones and Android phones.

Social Media Sparks Outrage 

The issue gained widespread attention after a social media post went viral. This post showcased screenshots that appeared to demonstrate Uber charging significantly different prices for the same route depending on whether the ride was booked on an iPhone or an Android device. Subsequently, other social media users reported similar discrepancies with Ola, with iOS users seemingly facing higher fares for equivalent trips.

Government Takes a Strong Stance on Consumer Exploitation

Previously, Minister Joshi had characterised this alleged practice as a "prima facie unfair trade practice" and a "blatant disregard" for consumers' right to transparency. He reiterated the government's "zero tolerance for consumer exploitation" and directed the CCPA to conduct a thorough investigation to determine the validity of these claims.

Uber Responds to the Allegations

In response to the current allegations, Uber has issued a statement denying that its pricing algorithm discriminates based on the user's device. The company explained that various factors, including the precise pick-up and drop-off locations, as well as the estimated time of arrival (ETA), contribute to the final fare calculation. Uber explicitly stated that it does not personalise trip pricing based on the rider's phone manufacturer. They emphasise that variations in these factors, even for seemingly identical rides, can lead to different fares.

The CCPA's ongoing investigation will shed light on whether Ola and Uber are indeed engaging in discriminatory pricing practices or if the observed price differences can be attributed to other legitimate factors. The outcome of this investigation will be of significant interest to consumers and the broader tech industry.