Why Modi government has issued a notice to Uber
What's the story
The Central Consumer Protection Authority (CCPA) has sent a notice to Uber, questioning its 'Advance Tip' system. The practice encourages users to pay an upfront tip to get quicker ride confirmations and pickups. Union Consumer Affairs Minister Pralhad Joshi has raised serious concerns over this practice, calling it "unethical," "exploitative," and a form of unfair trade.
Twitter Post
Take a look at Joshi's post
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… pic.twitter.com/WaPH26oT9G
— Pralhad Joshi (@JoshiPralhad) May 21, 2025
Minister's stance
Joshi emphasizes tipping should be voluntary
Joshi has clarified that tipping should be a voluntary act of appreciation given after service, not an entitlement demanded beforehand. He directed the CCPA, which operates under the Consumer Affairs Ministry, to investigate Uber's practice after expressing his concerns. The minister emphasized that fairness, transparency, and accountability must be upheld in all customer interactions.
App feature
Uber's app prompts users for upfront tips
Uber's app encourages users to pay an upfront tip of ₹50, ₹75, or ₹100 for faster service. "A driver may be more likely to accept this ride if you add a tip," reads the app message. It also mentions that drivers get 100% of the tip but users can't change the amount once they add it.
Past scrutiny
CCPA has previously scrutinized Uber's practices
Notably, this isn't the first time CCPA has put Uber under the scanner. Back in January, the authority had sent notices to both Uber and Ola over the charge of differential pricing on the basis of users' mobile operating systems (Android or iOS). The latest notice comes as part of the continued regulatory watch on ride-hailing platforms in India.