The Central Consumer Protection Authority (CCPA), India’s apex consumer rights body, has issued a formal notice to ride-hailing giant Uber over its contentious “advance tip” feature, which allegedly incentivises customers to pay a tip upfront in exchange for quicker ride confirmations. The move follows direct intervention from Union Consumer Affairs Minister Pralhad Joshi, who has labelled the practice as unethical and a violation of fair trade norms.
Taking to social media platform X (formerly Twitter) on Wednesday, Joshi condemned Uber’s tipping model, saying, “The practice of ‘Advance Tip’ is deeply concerning. Forcing or nudging users to pay a tip in advance, for faster service, is unethical and exploitative. Such actions fall under unfair trade practices. Tip is given as a token of appreciation, not as a matter of right, after the service.”
Joshi emphasised the importance of fairness, transparency, and accountability in digital consumer interactions and confirmed that he had directed the CCPA to take swift action on the matter.
The feature in question prompts users during the booking process to add a tip, typically Rs 50, Rs 75, or Rs 100, with the message, “Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a tip.” Uber claims the tip goes entirely to the driver, though the app also warns users that once an advanced tip is added, it cannot be modified. However, Uber isn’t the only body displaying the advanced tip feature. Platforms like Rapido and Ola have this tipping in advance system, although Ola’s interface does not exclusively mention tipping in exchange for quicker ride confirmations.
The CCPA, which operates under the Ministry of Consumer Affairs, has now sought a detailed explanation from Uber. The authority has raised concerns that the tipping prompt could amount to coercion, misleading customers into believing they must pay extra to ensure timely service, a practice critics argue could erode consumer trust.
This is not the first time the CCPA has raised red flags over the operations of ride-hailing companies. In January, both Uber and its rival Ola were served notices over allegations of differential pricing based on the user’s mobile operating system, with reports suggesting higher fares for iOS users compared to Android users for identical routes. With back-to-back investigations and mounting regulatory pressure, Uber may now be compelled to revisit its service models in the Indian market, particularly those that blur the lines between convenience and exploitation.