Cab aggregator apps like Ola, Uber, and Rapido offer users an option to give an advance tip of ₹50, ₹75, or ₹100 while booking a cab.
This tip is meant to increase the chances of quicker pickup and driver acceptance. However, this feature is now under government scrutiny, and the companies may soon face penalties.
Why Are These Companies in Trouble?
Despite receiving a notice from the Central Consumer Protection Authority (CCPA), the companies have refused to remove the advance tip option.
Now, according to sources, the CCPA has started an investigation into this matter and may impose penalties once the inquiry is completed. The investigation is expected to be over by next week.
What Do the Companies Say?
Cab aggregators argue that this is not an unfair trade practice, as users are not forced to give a tip—it’s optional. However, CCPA is examining the claims made by these companies.
When Did the Issue Start?
On May 16, CCPA sent notices to Ola, Uber, and Rapido. The authority raised concerns about charging users extra upfront to get better or faster service.
What Did the Government Say?
Union Minister Prahlad Joshi called the practice “unethical and exploitative.” He posted on X (formerly Twitter), saying that forcing passengers to pay extra for faster service is an unfair trade practice.
He added that while tips after service are a gesture of appreciation, demanding them in advance is wrong.
What Is This Advance Tip Feature?
When booking a ride, users see an option that says:
“Add tip for faster pickup. If you add a tip, the driver may be more likely to accept the ride.”
Users can choose from ₹50, ₹75, or ₹100. The apps also mention that the entire tip goes to the driver and cannot be changed after it is added.
This issue has now picked up pace, and the final outcome will depend on the results of CCPA’s investigation. A penalty may soon be imposed on these major ride-hailing platforms.
