New Delhi [India]: Union Minister for Consumer Affairs, Food and Public Distribution, Pralhad Joshi has raised serious concerns over the ‘Advance Tip’ feature in ride-hailing platform Uber, calling it an unfair trade practice and demanding accountability from the company.
In a post on social media platform X (formerly Twitter), Joshi criticized the platform for encouraging customers to pay a tip before a service is rendered, a practice he said is “unethical and exploitative.”
“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,” the minister wrote.
Uber currently offers users preset advance tip options of ₹50, ₹75, and ₹100, prompting them to tip before the ride even begins.
Regulator Steps In
Joshi confirmed that he has directed the Central Consumer Protection Authority (CCPA) to examine the issue. The CCPA has since issued a notice to Uber, demanding an explanation for the practice. The company has been given 15 days to respond.
“CCPA has issued a notice to @Uber in this regard, seeking explanation from the platform,” Joshi stated.
Wider Industry Practice
While Uber is under scrutiny, it is not the only platform to feature advance tipping. Other mobility apps such as Rapido and Namma Yatri also include optional advance tipping mechanisms for drivers. Additionally, e-grocery and quick-commerce platforms like Blinkit offer customers the option to provide advance tips to delivery personnel — usually ranging from ₹20 to ₹50, with the option to customize.
Recurring Issues With Ride-Hailing Apps
This is not the first time cab aggregators have come under the consumer affairs ministry’s radar. Earlier this year, the CCPA issued notices to both Ola and Uber over alleged differential pricing based on the type of smartphone used by customers — a move criticized as discriminatory and opaque.
The ministry has emphasized that consumer rights must be protected in the rapidly growing digital services sector, especially when it comes to pricing transparency and ethical business practices.