Month after CCPA notice, advance tipping continues on Ola, Uber, Rapido, and Namma Yatri

More than a month after the Central Consumer Protection Authority (CCPA) issued a notice to ride-hailing apps such as Ola, Ube India, and Rapido over their advance tipping feature, the controversial practice still remains active on these platforms.

The advanced tipping feature, as it implies, allows users to tip for a service in advance. However, many view this as a new tactic to nudge drivers into accepting pickups. Users already face numerous issues with ride-hailing services, including poor driver behavior, demands for cash payments, and drivers asking for the destination in advance only to cancel trips. Additionally, getting instant customer support from these providers is often cumbersome.

Expectedly, several users have criticised the advance tipping feature. They reported being nudged or defaulted into paying tips before even beginning their ride. Many called the practice misleading and unfair. However, as of June 22, there has been no public update on the outcome or progress of the investigation.

It’s worth mentioning here that Union Consumer Affairs Minister Pralhad Joshi had also addressed the issue publicly. In a post on X, he stated that the government is taking these concerns seriously. He added that the CCPA is investigating other platforms such as Ola, Uber and Rapido and that they would also receive notices if found engaging in similar practices.

Despite the announcement, Ola, Uber, Rapido and Namma Yatri still show users tipping options during the payment process or in the fare summary. Many users on platforms like X and Reddit have complained about being charged tips by default or not having a clear way to opt out.

Some users allege that Namma Yatri was the first to introduce this practice in Bengaluru, followed by other platforms. Entrackr could not confirm whether Namma Yatri also received a notice from the CCPA.

Responding to Entrackr's queries, an Uber spokesperson said, “We are committed to providing a world-class experience every time someone chooses Uber. Based on feedback from riders, drivers, and our broader community, we’ve made some updates to the app. We continue to engage with the authorities on this issue."

Ola, Rapido, Namma Yatri, and the CCPA did not respond to queries until the time of publication.

While tipping is not illegal, placing it within the booking process without clear consent amounts to an unfair trade practice. Critics argue that this approach shifts the responsibility of fair driver compensation onto passengers, while platforms continue to retain their service commissions. The continuation of the feature has also prompted questions about regulatory enforcement and raised fresh concerns about violations of consumer rights.

Earlier this year, Ola and Uber received notices from the CCPA over alleged fare disparities between iPhone and Android users. However, both companies denied the claims and maintained that they follow a uniform fare structure regardless of the smartphone used.