Why users feel Ola, Uber, Rapido's advance tipping is grossly unfair

India Today

30-05-2025

Uber and Rapido's "advance tipping" feature, where users are prompted to tip drivers before a ride begins, has come under heavy criticism from the Central Consumer Protection Authority (CCPA) and consumers. Last week, the CCPA issued a notice to Uber, raising concerns about the feature, which encourages users to "add a tip for faster pickup". The advance-tipping feature is unethical and, in a way, promotes bidding for cabs.advertisementUber suggests that drivers may be more likely to accept a ride if a tip is included upfront. Rapido and Ola Cabs have also adopted similar models, nudging users to pay extra to improve their chances of securing a ride quickly.Union Minister for Consumer Affairs, Pralhad Joshi, confirmed that the CCPA was investigating ride-hailing apps, including Ola and Rapido. Uber was already under the CCPA scanner.
"Forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative. Such actions fall under unfair trade practices. A tip is meant to be a token of appreciation, not a precondition for service," Joshi said.HOW DID THE ADVANCE-TIPPING SYSTEM START?Interestingly, this controversial system originated with the Karnataka government-backed app Namma Yatri in 2022.Rapido adopted it in 2023, and Uber rolled it out in April 2025, after announcing the feature late last year.advertisementRapido has defended the feature, saying it's optional and only appears when no driver accepts a ride within 30 seconds.Namma Yatri, interestingly, has tweaked its language from "add a tip" to "add more (voluntary)". It is meant to show that advance-tipping is a customer preference and voluntary.However, in the ecosystem where cabs are meant to be booked in real time, advance tipping doesn't remain voluntary. There is always a fear playing out – if I don't, others will.WHAT ARE DARK PATTERNS ON E-PLATFORMS?Advance tipping could also be a case of dark patterns and drip pricing — two deceptive design strategies increasingly criticised in digital services.A dark pattern is a manipulative interface design that tricks or pressures users into making choices they might not otherwise make, typically benefiting the platform at the user's expense. In this case, by subtly nudging users to believe that adding a tip will improve their chances of getting a ride quickly, the apps exploit behavioural psychology to drive higher payments.The Indian government has asked e-commerce platforms to conduct internal checks for dark patterns on their platforms.Consumer Affairs Minister Pralhad Joshi said, "Companies must not wait for CCPA to intervene. They should proactively recognise and remove these deceptive practices before notices are issued. This is not regulatory compliance: it's about building trust with your consumers," according to a press release by the Ministry of Consumer Affairs.advertisementDrip pricing, on the other hand, involves displaying a low initial price while gradually revealing additional costs, like tips, throughout the transaction process. What seems like a straightforward fare can suddenly inflate, with users feeling cornered into paying more just to ensure basic service.An example of that would be base fares advertised by airlines. While booking air tickets, passengers pay for a host of charges, including seats, which makes the final fare much higher than the one displayed.A study by the Advertising Standards Council of India (ASCI) also found that 52 of the top 53 apps have deceptive UI (user interface)/UX (user experience) practices that mislead users into opting for something they originally did not intend to do.The study revealed that these problematic apps have been downloaded 21 billion times and flagged the impact on consumer behaviour because of such practices.The deceptive patterns discovered include privacy deception, interface interference, drip pricing, and false urgency, an official statement issued by the advertising industry's self-regulatory body said.advertisementWHAT ARE UBER, OLA AND RAPIDO USERS SAYING?Public sentiment has been overwhelmingly negative on advance tipping that most ride-hailing services, including the market-dominating Ola Cabs, Uber and Rapido. Social media platforms are flooded with complaints:"This whole 'advance tip' scam started with Bengaluru autos and was pushed by Namma Yatri. Now it's spread like a virus—Uber and Rapido have picked it up, too. Asking for extra money before the ride in the name of 'better service' is nothing but daylight robbery," wrote one user on X (formerly Twitter)."Some action needs to be taken against Rapido and Uber. They're asking for a tip before the ride is even booked. Booking rides used to be much easier before this feature," wrote another.Another user called the practice a scam: "Uber India and rapidobikeapp have created this unfair system. Drivers won't accept rides unless you add a tip–sometimes even waiting until the tip reaches 60% or 80% of the fare (sic)."One comment pointed to the deeper issue: "If you allow unethical pricing like surge charges, the next step is bound to be advance tipping. Thanks PralhadJoshiOfc for calling out Uber India's exploitative practice. This kind of Loot Economics must stop (sic)."advertisementSome have also raised questions about whether the tip truly benefits the drivers:"This was rapidobikeapp urging me to tip just seconds after booking a ride. The wait wasn't even a minute. Do tips go entirely to the drivers, or does the company take a share apart from its aggregator fee?"Others highlighted broader issues. "Uber's upfront pricing is hurting drivers. It doesn't compensate them for pickup mileage, time, or wear and tear. The system isn't sustainable–and now this new tipping model makes it worse."The situation is ironic because users took to the ride-hailing apps to get rid of haggling but are now being forced to do the same with drivers online. That is why Ola Cabs, Uber and Rapido aren't just under the government's scanner over advance tipping, they are facing public backlash too.