Home Startup Uber and Rapido Continue Advance Tipping Amid Government Scrutiny

Uber and Rapido Continue Advance Tipping Amid Government Scrutiny

0

Uber and Rapido have continued offering advance tipping options in India despite mounting pressure from both users and government authorities. The Uber Rapido advance tipping feature lets riders add ₹50–₹100 upfront to encourage faster pickup acceptance, but it is now under legal scrutiny from the Central Consumer Protection Authority (CCPA).


What Is Advance Tipping?

Advance tipping is a feature where apps like Uber and Rapido ask riders to tip drivers before confirming a ride. The companies claim this increases the chance of the ride being accepted faster, especially during peak hours or in remote areas.

But many riders see this as a forced surcharge or “bidding” system to get basic service.


Why It’s Controversial

  1. Exploits Urgency: Riders feel pressured to pay more during emergencies or poor availability.
  2. Unclear Transparency: It’s unclear if drivers fully receive the tip amount.
  3. Violates Tip Norms: Tips are traditionally post-service gestures, not pre-conditions to be served.

Government Action on Uber Rapido Advance Tipping

The Consumer Affairs Minister, Pralhad Joshi, called advance tipping “deeply concerning” and unethical on X (formerly Twitter). The CCPA issued a legal notice to Uber demanding an explanation within 15 days.

Now, Rapido and Ola are also under regulatory investigation after adopting similar practices. The CCPA is evaluating whether these platforms violated consumer protection rules.


User Reactions

Social media is flooded with criticism:

  • On Reddit and Twitter, users described the feature as “extortion” and “a dark pattern.”
  • Riders said they now feel compelled to pay tips just to get a ride, especially at night or in low-demand zones.

What Uber and Rapido Are Saying

Uber has not publicly commented on the notice yet. Rapido has also stayed silent while continuing to display advance tipping prompts in its app.


What Happens Next?

The CCPA may:

  • Fine Uber, Rapido, and Ola under India’s consumer laws.
  • Demand removal or redesign of tipping features.
  • Introduce new rules to govern digital tipping and in-app payments.

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exit mobile version