After Uber, CCPA probes Ola & Rapido over ‘Advance Tip’ for faster rides

Ola and Rapido are under investigation by the Central Consumer Protection Authority (CCPA) to check if they are forcing or nudging users to pay advance tips in exchange for quicker service. The probe follows a notice issued to Uber just a day earlier over the same practice.

"CCPA is investigating other apps like Olacab and Rapido, they will also be served notice if they are found indulging in such practices," said Consumer Affairs Minister Pralhad Joshi said in a social media post.

"The practice of 'Advance Tip' is deeply concerning," he said.


"Forcing or nudging users to pay a tip in advance, for faster service, is unethical and exploitative. Such actions fall under unfair trade practices," the minister wrote.


Joshi emphasised that tipping is meant as a token of appreciation, given after service completion, not as an entitlement beforehand.

"Fairness, transparency and accountability must be upheld in all customer interactions," Joshi added.

What's the feature?

Uber has introduced an "Advance Tip" feature in its app, which allows users to tip drivers before booking a ride, with the suggestion that doing so may lead to faster service. The app prompts users to add a tip of Rs 50, Rs 75, or Rs 100 during the booking process, stating, "Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a tip."

Online backlash

The tip move has also created a controversy on social media. One user wrote, "This whole ‘advance tip’ scam started with Bengaluru autos and was pushed by Namma Yatri. Now it’s spread like a virus — even Uber and Rapido have picked it up."

Replying to the minister's post, another user wrote, "Not just that, now Uber has stopped showing fare. It asks us to "continue without seeing fare". Fare shows only after driver is matched. How can this be allowed?"

Users also pointed out that this "unethical" practice was spreading to other apps like Ola Cabs and food delivery companies Swiggy and Zomato.