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Are cab aggregators like Ola and Uber charging more from customers using an iPhone than those using Android devices? The discussion broke out on social media after a user shared photos of ride estimates on two phones, one running on Android and another running on Apple’s iOS.
The debate gained traction after a survey in Chennai. Fares for the same ride were compared on both devices at three locations, and every time, the fare on the iPhone was higher. However, this cannot be considered conclusive evidence, as cab fares are often dynamic, fluctuating based on demand. The differences were more pronounced in short-distance or single rides.
According to a Times of India report, Uber and Ola responded to the survey. Uber denied any policy of personalising fares based on device type, attributing any differences to factors like time, distance, and real-time demand. Ola declined to comment.
Experts suggest that fares might be influenced by hardware data permissions granted during app installation. C Ambigapathy, Managing Director of Fastrack (Chennai), stated that companies can easily adjust fares using hardware details, describing this as a ‘dynamic pricing algorithm’.
P Ravikumar, former director of C-DAC Thiruvananthapuram, explained that companies collect data like device type, app usage, and search patterns, using machine learning tools such as Google Cloud AI or Azure ML to adjust fares accordingly.
Apps may charge higher fares for users who frequently check prices or make regular bookings. By analysing user behaviour, companies estimate the likelihood of booking and adjust fares upward. Users who delay booking in hopes of lower prices may still end up paying more.