‘What’s going on here?’: LinkedIn user’s post about Uber charging higher fares on iPhone than Android for the same route goes viral; Netizens say: “This pricing methodology is unethical.”

Niraali Parekh, founder and creative director of Bokap Designs, in a LinkedIn post, recounted a curious incident involving a colleague who booked an Uber ride using two different phones simultaneously, one Android and an iPhone, for the same pickup and drop-off . needles. The results? A significant difference in rates: On Android, the rate was Rs 290.79 and on iPhone, the rate jumped to Rs 342.47.

Parekh further said that this discrepancy is far from accidental. Instead, it reflects a calculated pricing strategy based on design thinking, user insights, and data analysis.

According to Parekh, there are three key factors at play:

1. Information about user behavior Uber and other transportation apps are leveraging data that suggests iPhone users are often perceived as “premium customers.” Research shows that iPhone users, on average, show a greater willingness to pay for services. This information influences pricing decisions, creating a dynamic “device-based” pricing model.

2. Platform fees Apple charges app developers up to a 30% commission for in-app purchases, significantly higher than the fees associated with the Android Play Store. This commission structure indirectly affects pricing strategies as companies seek to offset the higher costs associated with the Apple ecosystem.

3. Dynamic customization Modern apps increasingly employ dynamic pricing algorithms that adapt to user behavior and profiles. Factors such as device type, browsing patterns, and purchase history could subtly influence the rates shown to users.

In your post, you posed a pertinent question: “When does personalization improve the user experience and when does it start to feel exploitative?” While pricing strategy may be based on understanding and adapting to user behavior, its ethical implications remain murky.

From a business point of view, dynamic pricing represents a smart approach to maximizing value. However, for users, it can erode trust if it is perceived as manipulative or unfair.

The post has since gone viral, with users flooding the comments section to share their opinions. Reactions have been polarized, highlighting the complexity of the issue.

Some commentators saw the pricing strategy as an inevitable consequence of a data-driven business model. One user wrote: “Not just on Uber, it happens on many platforms. I recently found this on MakeMyTrip as well. They charge more at hotels when I try to book from my iPhone. The same hotel for the same date shows a much lower cost when I checked from The My wife’s Android phone. I discovered this accidentally. This unethical business irritates me a lot. I decided not to use MakeMyTrip. Now Uber is added to my personal banned list.

On the other hand, critics described the price disparity as a breach of trust. One comment read: “Let’s call a spade a spade. This pricing methodology is unethical. When there is ZERO price transparency, consumers are taken advantage of. This is the misuse of data and design to extract value of customers without giving them tangible benefits in return, dynamic pricing is disastrous.

“This is true. It depends on various factors like customer location, surge situation, customer/driver rating, official/personal trip, commission to supplier/app etc., the price can never be the same Only when the government decides to intervene and set the price “This can end. Our governments are not interested in doing this. Therefore, buyers/customers should be alert and avoid situations where this is also prevalent in physical businesses,” commented one user.