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Indian Consumer Watchdog Investigates Uber's Advance Tipping Feature

The CCPA has issued a notice to Uber, labeling its advance tipping model as unethical and unfair, while expanding its probe to other ride-hailing platforms.

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Uber, Rapido Face Govt Scrutiny Over ‘Advance Tip Extortion’ Move!

Overview

  • The Central Consumer Protection Authority (CCPA) has formally issued a notice to Uber, demanding an explanation for its advance tipping feature within 15 days.
  • Union Minister Pralhad Joshi criticized the feature, calling it exploitative and stating that tipping should remain voluntary and post-service.
  • Uber's advance tipping feature prompts users to pre-pay tips of ₹50, ₹75, or ₹100 during booking, suggesting it may increase ride acceptance likelihood.
  • Preliminary inquiries into similar practices by Rapido and Ola have been announced, signaling a broader regulatory crackdown on ride-hailing platforms.
  • This investigation follows earlier scrutiny of Uber and Ola for alleged differential pricing based on users' mobile operating systems.