Uber gets CCPA notice for asking users to tip in advance for quicker rides

Union Minister Pralhad Joshi slammed Uber's practice as unethical and exploitative, while the consumer protection body issued a notice to the cab aggregator over the move

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The Central Consumer Protection Authority (CCPA) has issued a notice to ride-hailing platform Uber for allegedly encouraging users to pay a tip in advance in order to receive quicker services, Union Consumer Affairs Minister Pralhad Joshi said on Wednesday.

 

Describing the practice as troubling, Joshi labelled it both "unethical" and "exploitative". Uber is yet to respond publicly to the notice.

 

In a post shared on social media platform X, Joshi stated: "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 service. 

 

"Taking cognisance of this, I had asked CCPA to look into it and today CCPA has issued a notice to @Uber in this regard, seeking explanation from the platform," he added.

 

He also pointed out the importance of fairness, transparency, and accountability in customer dealings.

Users prompted to pay for faster pick-up

When booking a ride through the Uber app, users are presented with an option to offer a tip of ₹50, ₹75 or ₹100 to potentially receive quicker service.

 

The app message reads: "Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a tip." It also states: "If you add a tip now, you can't change it later," and notes that drivers receive the full tip amount.

Previous allegations of price discrimination

This is not the first time Uber has come under scrutiny. In January, the CCPA had sent notices to both Uber and Ola over claims of charging different fares for the same journey, depending on whether the user was using an Android device or an iPhone.

 

At the time, Joshi had posted on X: "As a follow-up to the earlier observation of apparent #DifferentialPricing based on the different models of mobiles (#iPhones/ #Android) being used, Department of Consumer Affairs through the CCPA has issued notices to major cab aggregators #Ola and #Uber, seeking their responses."

 

Both companies denied these claims, maintaining that their pricing was not based on the type of mobile phone a customer was using to book a cab.

Uber launches metro ticketing and logistics via ONDC

In a separate development, Uber has partnered with the Open Network for Digital Commerce (ONDC) to introduce metro ticket booking through its platform, beginning with the Delhi-NCR region.

 

This marks the first time Uber is offering such a service in India. The integration allows users to purchase QR code-based metro tickets directly via Uber. India is Uber’s third-largest market globally. 

 

The ONDC, launched in 2021 by the Department for Promotion of Industry and Internal Trade (DPIIT), is a decentralised, open network aimed at connecting buyers and sellers — similar to how UPI works for digital payments.

 

Uber has already introduced services like Courier XL in Delhi-NCR and Mumbai. Through ONDC, businesses can now access Uber’s delivery network for last-mile logistics, even if they are not part of the Uber app.