On Wednesday, the Central Consumer Protection Authority (CCPA) issued a notice to Uber for allegedly “forcing or nudging” users to pay advance tips for faster service.
New Delhi: A day after ride-hailing platform Uber received a notice from the Central Consumer Protection Authority (CCPA) over its ‘Advance Tip’ feature, Union Consumer Affairs Minister Pralhad Joshi said that other such platforms are also under the scanner. The minister said that the consumer protection watchdog CCPA is investigating the matter to ascertain if platforms like Ola Cabs and Rapido are indulging in the unfair trade practice of ‘advance tipping’.
“CCPA is investigating other apps like @Olacabs and @rapidobikeapp, they will also be served notice if they are found indulging in such practices,” Union Consumer Affairs Minister Pralhad Joshi said in a post on X on Thursday.
Joshi, on Wednesday, said the practice of ‘Advance Tip’ was 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,” the minister had said, adding that tipping is meant as a token of appreciation, given after service completion, not as an entitlement beforehand.
On Wednesday, the Central Consumer Protection Authority (CCPA) issued a notice to Uber for allegedly “forcing or nudging” users to pay advance tips for faster service.
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.
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.
