Ride-hailing apps revise tipping policy after warning

Union Consumer Affairs Minister Pralhad Joshi said on Sunday that ride-hailing apps have started replacing the ‘advance tip’ option with a ‘voluntary’ tag after warnings of action against customer exploitation.

“Cab service providers like Ola, Uber and Namma Yatri, which were collecting advance tips, are now facing scrutiny. Following a warning from the Central Consumer Protection Authority (CCPA), these companies have updated their apps, replacing ‘advance tips’ with ‘voluntary tips’ and ‘optional tips’, Joshi said in a statement.

Since companies have updated their apps with ‘voluntary tips’ and ‘optional tips’, customers no longer need to pay tips in advance, and companies are prohibited from pressuring them to do so. Tipping should be a voluntary choice for customers, he said.

“On platforms like Yatri and Ola, customers can now skip the tipping option entirely. While Uber has not explicitly introduced a ‘voluntary’ label, it appears to have modified its app to ensure advance tips are no longer displayed during the booking process,” Joshi said.

He said that the Consumer Affairs Ministry will continue to monitor ride-hailing apps, and if they are found exploiting customers, strict action will be taken against them.

Recently, consumer protection watchdog CCPA issued a notice to ride-hailing apps for allegedly “forcing or nudging” passengers to pay advance tips for faster service.

Joshi also said that forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative. Such actions fall under unfair trade practices.

He pointed out that tipping is meant to be a token of appreciation given after service completion, not an entitlement beforehand.