In a post on LinkedIn, Nirali Parekh, founder and creative director of Bokap Designs, narrated a curious incident involving a colleague who booked an Uber ride using two different phones simultaneously, one Android and one iPhone, for the same ride-hailing and delivery service. points. Results? Big difference in prices: On Android, the fare was Rs 290.79 and on iPhone, the fare jumped to Rs 342.47.
Parekh further said that this contradiction is not a coincidence at all. Instead, it reflects a calculated pricing strategy informed by design thinking, user insights, and data analytics.
According to Parekh, there are three main factors that play a role in this:
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User behavior insights Uber and other ride-hailing apps are benefiting from data suggesting that iPhone users are often viewed as “privileged customers.” Research shows that iPhone users, on average, show a greater willingness to pay for services. This insight influences pricing decisions, creating a dynamic, “device-driven” pricing model.
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Platform fees Apple charges app developers a commission of up to 30% on in-app purchases, which is much higher than the fees associated with the Play Store on Android. This commission structure indirectly affects pricing strategies, as companies seek to offset the higher costs associated with Apple’s ecosystem.
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Dynamic customization Modern applications increasingly use dynamic pricing algorithms that adapt to user behavior and profiles. Factors such as device type, browsing patterns, and purchase history can slightly affect the prices displayed to users.
In her post, she raised a related question: “When does personalization improve the user experience, and when does it start to feel exploitative?” While pricing strategy may be rooted in understanding and adapting to user behavior, its ethical implications remain ambiguous.
From a business perspective, dynamic pricing is 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 thoughts. Reactions were polarized, highlighting the complexity of the issue.
Some commentators saw the pricing strategy as an inevitable consequence of the data-driven business model. One user wrote: “It’s not just Uber, this happens on many platforms. I recently found this on MakeMyTrip as well. They charge more for hotels when I try to book from my iPhone. Same hotel on same date shows a charge Much less when I booked from him I accidentally found out about this through my wife’s Android phone This unethical act bothered me so much I decided not to use MakeMyTrip anymore.
On the other hand, critics described the price disparity as a violation of trust. The caption read: “Let’s call a spade a spade. This pricing methodology is unethical. When price transparency is zero, consumers are exploited. This is an abuse of data and design to extract value from customers while giving them no tangible benefits in return. Dynamic pricing “It’s outrageous.”
“That’s right. It depends on various factors like customer’s location, mutation status, customer/driver rating, official/personal travel, seller/app commission etc. The price can never be the same. Only when the government decides to intervene Price reform” This could be over. Our government is not interested in doing this, so, buyers/customers should be alert and avoid situations where they avoid losses, this is prevalent in physical businesses as well,” commented one user.
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