CCPA issues notice to Uber on 'Advance Tip', after minister Pralhad Joshi took notice

ANI May 22, 2025 202 views

Union Minister Pralhad Joshi has called Uber's 'Advance Tip' feature unethical, prompting CCPA to issue a notice. He argues tips should be voluntary and given after service, not demanded upfront. Uber isn't alone—apps like Rapido and Blinkit also have similar tipping options. This follows earlier CCPA notices to Uber and Ola over alleged smartphone-based pricing discrimination.

"The practice of 'Advance Tip' is deeply concerning... forcing users to pay upfront is unethical and exploitative." – Pralhad Joshi
New Delhi, May 22: Indian minister of Consumer Affairs, Food and Public Distribution, Pralhad Joshi, raised concern over the feature of 'Advance Tip' in Uber app, and said he believes that the practice of tipping before the service is unfair and unethical.

Key Points

1

Minister Pralhad Joshi criticizes Uber's advance tipping as unfair

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CCPA issues notice seeking explanation from Uber

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Tips should be voluntary post-service, not mandatory upfront

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Other apps like Rapido, Blinkit also have similar tipping features

"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," Union minister posted on social media platform 'X'.

Uber asks for Advance tip of Rs 50, Rs 75 or Rs 100 from customers. He further added that, he had asked Central Consumer Protection Authority (CCPA) to look into the issue, and "CCPA has issued a notice to @Uber in this regard, seeking explanation from the platform."

Last week, the CCPA sent a notice to Uber, asking the company to explain its practice of collecting advance tips from users. The platform has been given 15 days to respond.

According to the minister, tips should be a voluntary gesture of appreciation given after the service is complete, not something paid upfront.

However, Uber is not the first ride-hailing services to have 'Advance Tip' feature. There are various apps which have this feature with them such as Rapido, Namma Yatri, and many more.

E-grocery and quick-commerce platform like 'blinkit' also asks for Advance tip for delivery agent, which is optional. The tip is between Rs 20 to Rs 50, it can also be customised by the buyer.

Earlier this year, Union Minister, announced that the Central Consumer Protection Authority (CCPA) has issued notices to major cab aggregators, Ola and Uber, over alleged differential pricing based on the type of smartphone being used by consumers. (ANI)

Reader Comments

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Rajesh K.
Finally! Someone is taking action against these unfair practices. I've noticed Uber drivers cancel rides when I don't select advance tip. This is pure blackmail. Good move by our minister 👏
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Priya M.
While I agree advance tipping is wrong, I hope this doesn't affect driver earnings. Many depend on these apps for livelihood. Maybe Uber should increase base fares instead of pushing tips?
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Amit S.
This is just tip of the iceberg! These apps have been exploiting both customers and drivers. Remember surge pricing during rains? Hope CCPA looks into all such practices. #ConsumerRights
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Sunita R.
I don't mind tipping after good service, but advance tipping feels like begging. In our culture, tips are given voluntarily for exceptional service, not demanded upfront. 😒
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Vikram J.
Foreign companies bringing their Western tipping culture to India. Here, we have different norms. Appreciate the minister's quick action on this issue. Hope other apps follow suit.
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Neha T.
While the concern is valid, I hope this doesn't become another case of over-regulation. The market should decide what works. If people don't like advance tips, they can choose other apps.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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Tags:
Uber Pralhad Joshi CCPA advance tip unfair trade practice consumer rights ride-hailing apps