CCPA issues notice to Uber over advance tips for faster service

Bengaluru: Central Consumer Protection Authority (CCPA) on Wednesday issued a notice to ride-hailing platform Uber for allegedly "forcing or nudging" users to pay advance tips for faster service. 

"The practice of advanced tips is deeply concerning. Forcing or nudging users to pay a tip in advance, for faster service is unethical and exploitative. Fairness, transparency and accountability must be upheld in all customer interactions," Union Minister of Consumer Affairs Pralhad Joshi said in a social media post on X.

However, an industry source aware of the development said that the company hasn’t received the notice yet. Other ride hailing apps like Namma Yatri, Ola, Rapido also have a feature of adding tips to get rides faster, forcing consumers to pay extra without disclosing if the tip even goes to the pocket of the drivers. 

“Some platforms that did not pay 5% goods and services tax (GST), claimed that they have a software as a service (SaaS) model and got drivers to directly earn more through tips - to avoid an unfair advantage eventually all players moved to this model,” the source added. 

Ride hailing companies usually promote the added tip with prompts such as  ‘higher the price, higher the chance of getting a ride’ or ‘high demand, adding a tip helps you find a ride faster’. While the tips for booking an autorickshaw usually start at Rs 10 for Rapido and Ola, the starting tip is Rs 20 for Namma Yatri. 

However, this isn’t the first time that Uber has come under radar of the consumer protection watchdog. In January 2025, CCPA had served notices to Ola and Uber following complaints about discriminatory and predatory pricing based on a consumer’s mobile operating system (Android/iPhone). However, the companies have denied the claims.