Uber Faces Govt Notice Over Pre-Ride Tipping, Flagged as Unfair Trade

The Centre has issued a notice to Uber India over its "advance tip" feature, calling it an unfair and exploitative trade practice that undermines consumer rights.

- Dhirendra Kumar

NEW DELHI:

The Central Consumer Protection Authority (CCPA), acting on complaints from users, has asked the ride-hailing platform to explain why customers are being nudged to tip drivers before a ride even begins.

"The practice of 'Advance Tip' is deeply concerning," consumer affairs minister Prahlad Joshi said in a post on X on Wednesday. "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," he wrote.