Earlier, ride-hailing platforms Ola and Uber were served notices for alleged differential pricing for identical rides based on the user’s mobile operating system — Android or iOS.
New Delhi: Ride-hailing platform Uber has received a notice from the Central Consumer Protection Authority (CCPA) over its ‘Advance Tip’ feature. The regulatory authority has sought an explanation from the company regarding the feature that allegedly “forces or nudges” customers to get a ‘faster pickup’.
What Is Uber’s Advance Tip Feature?
This is a new feature added by the company. Some users saw a message regarding an ‘advance tip’ option, which claimed that adding an ‘advance tip’ would help them get faster pickup.
“The app shows fixed tip amounts– Rs 50, Rs 75, and Rs 100– along with a message that reads: “Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a tip,” the message reads.
The platform emphasised that the driver would receive 100 per cent of the tip selected by the customers. However, it also warned that once added, the tip cannot be changed.
Deeply Concerning
Reacting to this, Union Consumer Affairs Minister Pralhad Joshi said that the practice is “unethical and exploitative”.
“The practice of ‘Advance Tip’ is deeply concerning. Forcing or nudging users to pay a tip in advance, for faster service is unethical and exploitative. Such actions fall under unfair trade practices. Tip is given as a token of appreciation not as a matter of right, after the service,” Joshi said.
“Fairness, transparency and accountability must be upheld in all customer interactions,” he added.
Unfair Pricing Practices
Earlier, ride-hailing platforms Ola and Uber were served notices for alleged differential pricing for identical rides based on the user’s mobile operating system — Android or iOS.
Delhi Metro Ticketing Goes Live On Uber App
Meanwhile, Uber has announced the rollout of metro ticketing on the Uber app, powered by the Open Network for Digital Commerce (ONDC), starting with the Delhi Metro. According to the company, three more cities across India are slated to go live in 2025.
