New Delhi— The Central Consumer Protection Authority (CCPA) has launched an investigation into cab-hailing platforms Ola and Rapido, following concerns over the introduction of “advance tip” features. The probe was initiated after Consumer Affairs Minister Pralhad Joshi flagged the issue, starting with a formal notice issued to Uber.
In a post on social media, Minister Joshi criticized the practice, calling it “unethical and exploitative.” He wrote, “Forcing or nudging users to pay a tip in advance for faster service is an unfair trade practice. A tip should be a token of appreciation after service—not an obligation before it.”
Joshi confirmed that the CCPA has already issued a notice to Uber and is currently investigating Ola and Rapido. “If found to be engaging in similar practices, they will also be served notices,” he added.
The controversy stems from a feature in the Uber app prompting users to offer a tip—₹50, ₹75, or ₹100—at the time of booking, with a message stating: “Add a tip for speedier pickup. If you leave a gratuity, the driver may be more inclined to accept the ride.” It also notes that the tip cannot be changed later and is passed on in full to the driver.
This is not the first time these platforms have come under scrutiny. In January, the CCPA issued notices to Uber and Ola after complaints that ride fares varied depending on whether the booking was made from an Android or iPhone device—an allegation both companies denied.
Minister Joshi emphasized the need for fairness, transparency, and accountability in consumer-facing digital services, stating that such practices undermine consumer trust. (Source: IANS)
