Ola, Uber, Rapido Under Fire for Advance Tipping Feature Amid CCPA Investigation
- Ride-hailing apps continue advance tipping feature despite CCPA scrutiny and user complaints.
- Users claim they are nudged or defaulted into tipping without consent, raising fairness concerns.
- No official update from CCPA yet; Minister assures continued action against unfair digital practices.
Over a month after the Central Consumer Protection Authority (CCPA) issued notices to ride-hailing platforms like Ola, Uber India, and Rapido regarding their advance tipping feature, the controversial practice remains active on these apps, drawing continued criticism from users.
The feature allows passengers to tip drivers before the ride begins a move that many users say is misleading and unfair. Complaints on platforms like X and Reddit suggest that riders are often defaulted into tipping or find it difficult to opt out, raising questions about transparency and informed consent.
Many consumers argue that the feature adds undue pressure and creates a power imbalance, potentially affecting whether drivers accept a ride. This comes at a time when riders already face challenges like trip cancellations, demands for cash payments, or drivers refusing service after hearing the destination.
Despite the uproar, as of June 22, the CCPA has not issued any updates regarding the outcome of its inquiry. The tipping option continues to appear in the payment process on apps including Ola, Uber, Rapido, and Namma Yatri the latter reportedly being the first to introduce the system in Bengaluru, followed by others.
Union Consumer Affairs Minister Pralhad Joshi acknowledged the complaints in a social media post, emphasizing that the government is taking the issue seriously. He stated that further notices could be issued to other platforms if similar practices are detected.
It is still unclear whether Namma Yatri has received an official notice from the CCPA. None of the companies involved Ola, Uber, Rapido, or Namma Yatri have issued a public response on the tipping issue.
Earlier this year, Ola and Uber also faced scrutiny over allegedly charging different fares to Android and iPhone users, a claim both companies denied.
