Uber, Ola and other cab aggregators directed to cease advance tipping option; govt calls it ‘misleading, unfair’

The central government has ordered cab aggregators like Uber and Ola to stop allowing customers to tip drivers before booking a ride, according to Consumer Affairs Secretary Nidhi Khare. The move is deemed "misleading" and "unfair" to consumers by Khare, who also heads the Central Consumer Protection Authority (CCPA). Khare revealed this after the CCPA imposed a ₹10 lakh fine on Rapido for various unfair business practices, including allowing advance tipping.

The CCPA is currently investigating the practices of Uber and Ola. Khare stated that the National Consumer Helpline has received numerous complaints against these platforms, as many consumers mistakenly believe that tipping is necessary to secure a ride. Dark patterns, which are deceptive interface features, have been identified in these practices.

For instance, prompts suggesting that paying more increases the likelihood of getting a ride can mislead users. Khare emphasized that tipping should be a voluntary choice made after completing the ride. The investigation into Uber and Ola is still ongoing.