Recently the Indian government has issued a notice to Uber over advance tips and is now shifting its focus to investigate if bike-taxi platform Rapido is engaging in similar practice as per the media report.
Government Sending Notice To Uber Over Advance Tips
Earlier, the government took action against Uber which has been asking users to pay tips in advance to secure a ride.
Following the lead, now the Central Consumer Protection Authority (CCPA) may launch a preliminary inquiry against Rapido if they find that the company is nudging users to pay tips before the service in their investigation.
It appears that the CCPA sent a notice to Uber, asking the company to explain its practice of collecting advance tips from users last week.
They have given 15 days to the platform to come with a detailed explanation.
Asking For ‘Advance Tip’ Fall Under Unfair Trade Practices
In this regard, the consumer Affairs Minister Pralhad Joshi raised concerns about the issue on social media, saying the practice of ‘advance tip’ is “deeply concerning.”
He further added “Forcing or nudging users to pay a tip in advance, for faster service is unethical and exploitative. Such actions fall under unfair trade practices.”
Moving ahead, he shared a screenshot of the Uber app which showcases the “Add a tip for faster pickup” message.
It appears that the advance tip message pops up when any user tries to book a ride.
Basically this feature of offering advanced tips, according to the message displayed on the app, would make a driver “more likely to accept the ride.”
The tips should be a voluntary gesture of appreciation given after the service is complete, not something paid upfront, said Pralhad Joshi.
Adding,“Fairness, transparency and accountability must be upheld in all customer interactions.”
According to the government, asking for tips before a ride could be seen as manipulating consumer rights and may violate consumer protection norms.
