The Central Consumer Protection Authority (CCPA) has issued a notice to Uber, questioning its practice of prompting users to pay a tip in advance in exchange for a potentially quicker ride confirmation. The move came after Union Consumer Affairs Minister Pralhad Joshi flagged the issue, calling it “deeply concerning and unethical”.
According to Joshi, nudging users to pay tips before receiving a service crosses a line. “A tip is meant to appreciate a service, not to buy it in advance,” he said in a post on X. He also mentioned that the CCPA has been asked to look into the matter, and that an explanation from Uber is now being sought.
When users book a ride through the Uber app, a screen pops up suggesting they tip ₹50, ₹75 or ₹100. The app message says this might “increase the likelihood” of a driver accepting the trip. However, it also mentions that once added, the tip cannot be changed. Uber assures that the full tip amount goes to the driver.
The suggestion implies a faster ride could be secured by offering money upfront—a practice critics say borders on pay-to-play. While tips have traditionally been optional and offered after the service, this model flips that norm.
Those are the questions now facing Uber. The CCPA is examining whether the practice falls under unfair trade practices, as defined by India’s consumer protection laws. The core concern is whether customers are being misled or pressured into tipping, rather than choosing to do so freely.
Joshi’s stance has been clear: fairness, transparency and accountability must remain central to how such platforms operate. Any attempt to monetise faster service—especially without full disclosure—could set a tricky precedent.
This isn’t Uber’s first brush with the authorities. Back in January, both Uber and Ola were pulled up over allegations of charging different fares based on the user’s mobile device—Android or iPhone. The companies denied any such discrimination, stating their pricing algorithms were device neutral.
The earlier episode had also been flagged by Joshi, and the Department of Consumer Affairs had sought clarification from both platforms.
Uber now has to respond to the notice issued by the CCPA. It remains to be seen how the company will justify its approach to tipping and whether changes will follow.
