After issuing a notice to Uber over advance tip, the government is now likely to investigate if bike-taxi platform Rapido is engaging in similar practice, sources said. This comes after government action against Uber which has been asking users to pay tips in advance to secure a ride.
The Central Consumer Protection Authority (CCPA) may launch a preliminary inquiry against Rapido if it finds that the company is nudging users to pay tips before the service.
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.
Consumer Affairs Minister Pralhad Joshi raised concerns about the issue on social media, saying 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,” Joshi wrote.
He shared a screenshot of the Uber app which showed "Add a tip for faster pickup" message. The advance tip message pops up when someone is trying to book a ride. The advance tip, according to the message displayed on the app, would make a driver "more likely to accept the ride."
Pralhad Joshi added that tips should be a voluntary gesture of appreciation given after the service is complete, not something paid upfront. “Fairness, transparency and accountability must be upheld in all customer interactions,” the minister said.
The government believes that asking for tips before a ride could be seen as manipulating consumer rights and may violate consumer protection norms.
Source: India Today