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CCPA Investigates Bengaluru Ride-Hailing Apps’ Tipping Feature

The probe follows users’ claims that tipping has become a de facto surge-pricing tool during a shortage of affordable last-mile transport.

Tipping auto drivers through aggregator apps is a usual thing, especially in Bengaluru.
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Overview

  • Union Minister Pralhad Joshi has directed the Central Consumer Protection Authority to issue notices to Ola, Uber and Rapido over their tipping options.
  • Commuters say the tip feature functions like hidden surge pricing since auto-rickshaws are not allowed to levy peak-hour fares.
  • Users criticized the mechanism as unethical and called on apps to implement automated rate adjustments rather than manual tipping.
  • The Karnataka government’s ban on bike taxis has reduced last-mile alternatives, heightening reliance on autos and worsening booking delays.
  • Advocates are pressing for clearer transport regulations and the legal restoration of bike taxis to ease strain on the auto-rickshaw network.