After Uber, Ola Denies Claims of Price Disparities on iPhone, Android

Ola Consumer, an Indian ride-hailing company, announced on Friday that it does not differentiate its pricing based on a user's mobile operating system, Reuters reported. The announcement comes after several users reported that identical journeys showed different fares when booked on Android and iOS devices.

A spokesperson for Ola Consumer stated, "We have a homogenous pricing structure for all our customers and do not differentiate based on the operating system of the user’s cellphone for identical rides. We have clarified the same to the Central Consumer Protection Authority today, and we will work with them to clear any misunderstanding in this regard."

Dynamic pricing is a fundamental feature of ride-hailing services, adjusting fares in real time based on factors such as peak hours, traffic conditions, and vehicle availability.

Most marketplace-based companies, including Uber and Ola, employ dynamic pricing models, meaning fares fluctuate frequently even on the same device depending on the time of booking and prevailing conditions.

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The Case

The Central Consumer Protection Authority (CCPA) recently issued notices to cab aggregators Ola and Uber, alleging they charged varied fares based on the mobile operating systems of users.

The controversy arose after several internet users posted screenshots showing a disparity in Uber and Ola fares between Android and iOS devices. These screenshots suggested that, for identical journeys booked at the same time, fares displayed on Apple smartphones were often higher than those shown on Android devices.

Some users speculated that the algorithms used by ride-hailing platforms might factor in the perceived affluence of Apple device users, as Apple smartphones are generally more expensive than Android devices.

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Uber’s Response

Before Ola, Uber denied the allegations of differential pricing based on a user’s phone model. Responding to the claims, a spokesperson for Uber said, "We do not base our charges on a rider's phone maker. We look forward to collaborating with the Central Consumer Protection Authority to clear up any misunderstanding."

Both Ola and Uber have agreed to work with authorities to address the concerns and clarify their pricing structures.