Recently, an Indian entrepreneur raised a debate on LinkedIn by claiming that Uber charges differently for the same ride on an iPhone and Android-based device.
Screenshots shared by the entrepreneur reveal that the fare difference is around Rs 52, with the Android trip costing Rs 290.79 and the iPhone trip costing Rs 342.47.
These claims have raised questions on whether the ride-hailing platforms are indulging in device-based pricing to differentiate between customers.
The CEO and main designer of a design studio, Nirali Parekh, made screenshots visible on her LinkedIn profile. She explained that a colleague had booked two Ubers at a time and location through an Android and another through an iPhone.
Apparently, the fare was higher for the iPhone, notwithstanding everything else being equal. Parekh doesn’t accuse Uber of wrongdoing, but she calls it an instance of “design thinking in action”, which could be informed by data insights and user behaviour.
Netizens reaction
In Parekh’s opinion, this situation underscores the way in which ride-hailing and other mobile applications use consumer profiles to determine pricing. She noted three reasons for ferry charge discrepancies: the public perception that people using an iPhone would be seen as “premium customers,” Apple’s 30% commission on in-app purchases, and differential pricing based on user behaviour.
“The query which is raising is: When does modification of an experience turn into an exploitative tactic and when does it make it more user-friendly? This approach is really where design thinking gets into understanding ways in which the user behaves and how that should be adapted. Businesses have it smart to use data to formulate ways of maximising value. Users have it tougher-does this pricing method improve the experience, or does it end up breaking trust?” Parekh wrote. It created Netizens’ responses.
In fact, the screenshots of Parekh prompted hundreds of comments. Some tech experts, however, were quick to dismiss any claims that Apple’s exorbitant fees would be responsible for this, as Apple does not usually charge that 30% fee on ride-hailing apps for payments made outside the iOS in-app purchase system.
There were other speculations such as differences in price owing to two entirely different Uber accounts with different histories and promotions.
On the other hand, some users said companies usually “take for granted” that iPhone users would be used to paying higher fares and could set fares based on that. They cited cases in other industries that demonstrated how price discrimination or dynamic pricing is informed by user data, loyalty, or perceived purchasing power.
“I think that’s really cool!” said a user. “It is the art of wits and the power of data collected inadvertently. Uber does great things for BI.”
Uber’s announcement:
Uber has announced the pricing differences that are levied on the different rides.
The costs of these two journeys vary in a number of ways. The pick-up point, ETA, and drop-off point on the requests differ, hence causing variances in fare. Uber does not personalize fares per rider’s cell phone manufacturer,” divulged the organization in its report.
