The Minister of Consumer Affairs, Pralhad Joshi, on Wednesday criticized ride-hailing platform Uber for its Advance Tip feature, calling it “unethical and exploitative.” The feature, which prompts users to offer a tip in advance in exchange for quicker service, has sparked regulatory scrutiny.
In a social media post, Joshi said he had directed the Central Consumer Protection Authority (CCPA) to examine the matter. Following his instruction, the CCPA issued a notice to Uber seeking a formal explanation.
“Forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative. Such actions fall under unfair trade practices,” the minister wrote. “A tip is meant to be a token of appreciation, not a matter of right—and certainly not before the service is rendered.”
Joshi also shared a screenshot from the Uber app showing a ride-booking screen where users are prompted to add a tip of ₹50, ₹75, or ₹100 with the message: “A driver may be more likely to accept this ride if you add a tip.” The app notes that the driver receives 100% of the tip, which cannot be modified once added.
This marks the second time the minister has taken action against app-based cab aggregators. In January, the CCPA issued notices to Uber and Ola over allegations of differential pricing based on users' mobile operating systems—Android vs. iOS.
“As a follow-up to earlier observations of apparent differential pricing based on the type of mobile phone (iPhones/Android) being used, the Department of Consumer Affairs, through the CCPA, issued notices to major cab aggregators Ola and Uber,” Joshi posted on X (formerly Twitter) on January 23.
Both Uber and Ola had denied those allegations, stating that fares are not influenced by the user’s phone model.