Ola, Rapido on consumer watchdog's radar for advance tipping after Uber

The Central Consumer Protection Authority (CCPA) has extended its probe into advance tipping feature by ride hailing platforms to Ola Cabs and Rapido as well after serving a notice to Uber for the same, stated Union consumer affairs minister Pralhad Joshi.

In a post on X, formerly Twitter, Joshi confirmed the action in response to a post alerting him that the two homegrown ride hailing platforms are also pushing passengers to tip drivers in advance.



Joshi stated that Ola and Rapid "will also be served notice if they are found indulging in such practices."

Uber faces the music

On Wednesday, CCPA issued a notice to Uber regarding this feature, labelling it as an unethical and unfair trade practice.

Joshi criticised the advance tipping feature, stating that tipping should be a voluntary gesture of appreciation after the service, not a precondition for receiving timely service.

"Taking cognisance of this, I had asked CCPA to look into it and today CCPA has issued a notice to Uber in this regard, seeking explanation from the platform. Fairness, transparency and accountability must be upheld in all customer interactions," Joshi said in a post on X.


What is advance tipping

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."

The app also mentions that 100% of the tip goes to the driver, and once added, it cannot be changed.

Ola and Rapido, Uber's primary rivals in India, also host a similar feature on their apps.