'We Don't Set Prices Based On A Rider's Phone Model': Uber Denies Using Differential Pricing in India

Uber has been accused of setting differential pricing based on the user's phone model.

Hyderabad: The San Francisco-based ride-hailing giant, Uber has denied allegations of using differential pricing based on a user's phone. Taxi aggregator Uber and its Indian rival Ola were served notices by the Department of Consumer Affairs over differential pricing for Android and iPhone commuters.

Pralhad Joshi, Union Minister of Consumer Affairs, on Thursday, said on X (formerly known as Twitter) that the Central Consumer Protection Agency (CCPA) has sent notices to both companies over differential pricing.

“As a follow-up to the earlier observation of apparent differential pricing based on different models of mobiles - iPhone/Android - being used, the Department of Consumer Affairs, through the CCPA, has issued notices to major cab aggregators Ola and Uber, seeking their responses,” the minister said.

He posted on X that it, prima facie, appeared to be an unfair trade practice, as the cab aggregators were alleged to be using differential pricing. He further stated that if this were true, it would be a blatant disregard for consumers' rights.

Several reports and user complaints on social media suggest that iPhone users were charged higher prices compared to Android users for the same ride. However, Uber is denying these allegations.

"We do not set prices based on a rider's phone manufacturer. We look forward to working with the Central Consumer Protection Authority to clear up any misunderstanding," An Uber spokesperson told Reuters.

Moreover, the San Francisco-based ride-hailing giant, Uber has locked itself in an aggressive battle with Ola, Rapido, and as well as the all-electric ride-hailing app BluSmart in India. Notably, India is Uber's biggest market outside the United States and Canada.

Joshi also took note of differential pricing in areas outside ride-hailing services. He mentioned that he would direct the CCPA to take a look into differential pricing strategies used by other sectors of the nation including food delivery and online ticketing portals.