Govt body issues notice to Uber for 'advance tip', consumer affairs minister terms practice unethical
The Central Consumer Protection Authority (CCPA) has issued a notice to ride-hailing platform Uber for 'advance tip' -- a feature through which the app lets users pay tips to drivers prior to booking rides.
In a post on X, union minister for consumer affairs Prahlad Joshi wrote, "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".
— JoshiPralhad (@JoshiPralhad) "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 added.A screenshot of the Uber app posted by Joshi showed the advance tipping option that reads, "A driver may be more likely to accept this ride if you add a tip". Gig work platforms, including ride-hailing, food delivery and quick commerce, typically offer the tipping option after the fulfilment of the order.
Uber did not comment on the development.
Over the past few years, Uber faced criticisms over increasing driver cancellations and elongated booking times -- following which it introduced a slew of measures to address these customer concerns.
In a September interview with ET, Uber India and South Asia president Prabhjeet Singh had said ride-hailing platforms in India do not have enough vehicles to fulfil the growing consumer demand.Uber and its rival Ola have been facing rising competition -- especially in the four-wheeler ride-hailing segment -- from WestBridge Capital-backed Rapido, which has a market share of around 40% across all verticals including bike taxis and auto rickshaws.
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