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2w ago

Consumer watchdog probes Uber, Ola and Rapido over advance tipping

The regulator has summoned the apps to explain tipping features under rules that ban coercive digital tactics.

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Overview

  • The Central Consumer Protection Authority issued notices in May to Uber, then Ola and Rapido, demanding detailed responses within 15 days and warning of enforcement action.
  • Union Minister Pralhad Joshi called advance tipping unethical and exploitative, warning that violations could incur fines up to Rs 20 lakh or six months’ imprisonment under the Consumer Protection Act.
  • Uber introduced its advance-tip option in April 2025 after Namma Yatri in 2022 and Rapido in 2023, prompting users to add non-refundable gratuities for faster ride confirmations.
  • A LocalCircles study found 48% of Indian apps use drip pricing to reveal hidden fees at checkout, while an ASCI review flagged deceptive UI/UX in 52 of the top 53 digital platforms.
  • Consumers have criticised advance tipping as a coercive bidding mechanism on social media, raising questions over transparency and whether drivers truly receive the full tip.