[TusharK]

The Central Consumer Protection Authority (CCPA) has issued a notice to major cab aggregator Uber for nudging users to pay an advance tip to avail quicker services.

Union Minister of Consumer Affairs Pralhad Joshi said that the practice of "Advance Tip" was worrisome and termed it "unethical" and "exploitative".

Joshi wrote on X:

"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."

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.

While trying to book a ride on the Uber app, the user is given a choice to pay a tip of either Rs 50, Rs 75 or Rs 100 for a faster confirmation and pick-up.

"Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a top," the message by the cab aggregator shows.

It also says that the driver receives 100% of the tip. "If you add a tip now, you can't change it later."

Source: NDTV, @JoshiPralhad

[am1m]

I guess most ride-hailing apps have a similar feature? Namma Yaatri has the same for autos.

But true, this could end up as the default option eventually with drivers waiting till prices go up before accepting? Not sure how it works on the driver side of the app.

On the other hand, as a user, at least I can see the costs up front and I can choose whether to book or not. I still prefer that over haggling with rude Bangalore auto drivers. And frankly, whatever Namma Yaatri shows, even with these 'tips' is still less than what these auto guys quote when you make the mistake of asking them directly!

[thanixravindran]

I think the minister is correct this time. Tip is a non obligatory gratitude that can be given after the service is rendered. I saw other ride hailing apps have made the auto rides as 'bargain fare' between rider and driver.

Uber half heartedly wanted to go that way with 'advance tip' mode. I think they just have copy this feature of 'bargain price' above base price shown in app soon.

Also, since the apps now just become a platform, they need to declare the 'platform fee' for each ride from the rider (same like from driver) and charge GST on their commission only.

[Turbanator]

Uber should rename to "Tatkal"

Am sure many people can afford to pay higher, especially at high-demand times/ areas. So a business, win-win for all. Of course, people on the budget will feel the pain and may have to use alternatives.

[vinu_h]

Tip in this case, whether before or after the trip, is non-obligatory and the debititself happens after the trip has ended. Which rule did the operator break ?

[Rajeevraj]

This is not just Uber now. All apps have added it. I think Namma Yatri started this. It is now just like bargaining digitally with a set of unknown drivers instead of doing it directly.

Couple of days back, I was trying for a ride. No luck in the first try, then it said 'add a tip and try' , still no luck, then it says 'increase the top for a better chance of getting a ride' and it goes on. Currently the top amount ranges from 10-50, assume it will soon keep going up. Uber also has some premium mode now, which is 20-30% more expensive.

I assume the drivers know that this is happening and hence will avoid accepting a ride in the first couple of rounds- knowing it will increase. Customers in the desparation to get a ride will continue to add that 20-30Rs.

The other theory is that the aggregator does not show the ride to the drivers at all in the first couple of rounds. Creating an artificial scarcity. Unethical, but definitely possible with some of these aggregators.