The Ministry of Consumer Affairs has issued notices to cab aggregators Ola and Uber following allegations of differential pricing based on the type of mobile device used for booking rides. The Central Consumer Protection Authority (CCPA) is investigating claims that customers using iPhones are charged higher fares than those using Android devices.

The probe was triggered by a series of viral social media posts, including one by a Delhi-based entrepreneur, who compared fares across devices and observed discrepancies. Another viral post in December 2024 showed screenshots of different fares for identical rides on two phones, sparking a widespread discussion.

Uber, in its defense, denied these allegations, stating that pricing variations arise due to factors like pick-up points, estimated time of arrival (ETA), and drop-off locations. The company clarified that it does not personalize fares based on the rider’s phone manufacturer. However, many users continued to share their experiences, fueling suspicion and dissatisfaction.

Union Minister of Consumer Affairs, Pralhad Joshi, has taken a strong stance, ordering the CCPA to conduct a thorough investigation into these allegations. "The government has zero tolerance for consumer exploitation. Transparency in pricing is non-negotiable," said Joshi, emphasizing consumer rights.

The CCPA has asked the companies to explain their pricing algorithms and clarify the accusations. The findings of the investigation will determine whether Ola, Uber, and other ride-hailing platforms are guilty of "unfair trade practices" or consumer discrimination.

This case highlights the growing concerns surrounding algorithm-based pricing models, raising questions about transparency, fairness, and corporate accountability.