The Central Consumer Protection Authority (CCPA) has issued a formal notice to ride-hailing platform Uber, demanding a response within 15 days regarding its “advance tip” feature. This feature allows users to offer tips to drivers before the ride is confirmed, raising questions about fairness in the booking process.
Feature Under Investigation
Uber displays a prompt during the ride booking stage encouraging users to add a tip beforehand, with messages such as “Adding a tip may increase the chances of a driver accepting this ride.” The government considers this practice potentially manipulative, as it could unfairly influence service delivery and consumer choice.
Minister Labels Practice Unethical
Union Minister for Consumer Affairs, Pralhad Joshi, publicly criticized the practice on social media. He stated that tipping should remain a voluntary act of appreciation after service, not a prerequisite for receiving quicker or better rides. Joshi described advance tipping as “unethical and exploitative” and an example of unfair trade practices.
Possible Action Against Rapido
Sources indicate that the government is also monitoring other ride-hailing apps. If Rapido is found to follow similar practices, it could face a preliminary investigation. Officials have hinted at reviewing more platforms to ensure consumer rights are not violated across the industry.
Focus on Consumer Rights
A senior official noted that the government is committed to protecting consumer interests in app-based services. The probe aims to ensure that fairness, transparency, and accountability are maintained in all customer interactions, especially where financial incentives could influence service outcomes.
