The Central Consumer Protection Authority (CCPA) has raised serious concerns about a new feature introduced by ride-hailing apps Uber, Rapido, and Ola Cabs. This feature, called “advance tipping”, asks users to tip drivers before the ride even begins. Many consumers and the CCPA have criticised this practice, calling it unfair and unethical.

What is advance tipping and why is it controversial?

The advance tipping feature encourages users to add a tip before booking a ride, promising a faster pickup or a better chance of getting a driver. Uber explains that drivers are more likely to accept a ride if a tip is given upfront. Rapido and Ola have also adopted similar systems. Rapido said the tip option appears only if no driver accepts the ride within 30 seconds.

However, the CCPA and consumer experts see this as unfair. Union Minister for Consumer Affairs, Pralhad Joshi, said, “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.”

This system first appeared with the Karnataka government-backed app Namma Yatri in 2022. Since then, other apps have copied it. Namma Yatri has now changed its language from “add a tip” to “add more (voluntary)” to show it is optional. But in real-time cab booking, users feel forced to tip to get a ride quickly because they fear losing out to others who do tip.

Experts also say advance tipping can be a “dark pattern”. Dark patterns are tricks in app design that push users to make choices they might not want, often benefiting the company rather than the user. In this case, users are subtly pressured to pay tips early to get faster service.

There is also “drip pricing”, where apps show a low initial price but add extra charges later, making the total fare higher. This confuses users, who may feel trapped into paying more to get basic service. For example, airline ticket prices often appear low at first but rise after adding fees for seats and baggage.

The Advertising Standards Council of India (ASCI) studied 53 popular apps and found 52 used deceptive designs like dark patterns. Health-tech, booking platforms, and e-commerce sites had the most problems. These apps have been downloaded 21 billion times, showing how widespread the issue is.

Public reaction and government action

Many users are unhappy with advance tipping on social media. One person wrote on X (formerly Twitter), “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.”

Others demand government action: “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,” said another user.

There are also doubts about whether the tips truly help drivers. One user said, “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?”

Union Minister Pralhad Joshi confirmed that the CCPA is investigating Uber, Ola, Rapido, and other apps. He urged companies to remove deceptive practices without waiting for legal notices. 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.”

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