CCPA issues notice to Uber for ‘advance tipping’; Consumer Affairs minister calls practice ‘unethical’

Union Minister of Consumer Affairs Pralhad Joshi called Uber’s ‘Advance Tip’ that nudges customers to tip the drivers an “unethical and exploitative” practice. He also added that he had written to the Central Consumer Protection Authority over this and the regulatory body sent a notice to Uber. 

“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,” said Joshi. 

“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,” said the minister.

The minister also added a screenshot of the feature once the customers begins the booking process. In the background, one can see the aggregator was working to connect a cab to the customer. The message flashed on the app at that point read: “Add a tip for faster pickup. A driver maybe more likely to accept this ride if you add a tip. Your driver receives 100 per cent of the tip. If you add a tip now, you can’t change it later.”

The app then shows options for tips for Rs 50, Rs 75 and Rs 100. 

Netizens noted that this was “basically a bribe/incentive to nudge drivers to accept the ride”, as mentioned by a user on X. Another said tip should be given if the customer is happy with the service, not to attract it.

Social media users pointed out that tips are not only offered in Uber, but also for Rapido bikes, and various food delivery apps. 

Meanwhile, CCPA is also likely to ask Swiggy and Zomato to make changes to their order cancellation policies to ensure customers are not charged with steep cancellation fees, as per a report in Moneycontrol.