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Uber denies differential pricing based on phone models amid CCPA investigation
After concerns were raised over alleged price discrepancies between Android and iPhone users, Uber clarifies that ride prices are not influenced by the phone brand, and promises cooperation with authorities.
The ride-hailing platform is under scrutiny for allegedly nudging users to pay tips upfront in exchange for faster service.
Uber has responded to claims made by India's Central Consumer Protection Authority (CCPA) that it, along side its rival Ola, may be using "differential pricing" for ride fares based on users' phone models, as per media reports.
This follows multiple reports and complaints from users who alleged that iPhone users were charged higher for identical rides compared to their Android counterparts.
The concern was raised by India's consumer affairs minister, Pralhad Joshi, who took to X on Thursday, that the CCPA had issued notices to both Uber and Ola over the issue. Joshi further indicated that the body would examine the differential pricing practices across various sectors, including food delivery services and online ticketing platforms.
Responding to the allegations, an Uber spokesperson told Reuters that they do not set prices based on a rider's phone manufacturer and are open to cooperating with the CCPA to clear up any misunderstanding.
While Uber is currently engaged in a fierce competition in India with SoftBank-backed Ola, Rapido, and all-electric ride-hailing app BluSmart, the controversy could add another layer of complexity to the competitive dynamics in one of Uber's largest markets.
As the investigation continues, the companies involved, including Ola, and tech giants like Apple and Google, have yet to issue a formal response.
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