CCPA Investigates Ola, Rapido Over Controversial ‘Advance Tip’ Feature Following Uber Probe

The Central Consumer Protection Authority (CCPA) has widened its scrutiny of ride-hailing platforms, launching investigations into Ola and Rapido over the use of an “advance tip” feature that may be influencing service speed. This move comes shortly after a similar notice was issued to Uber, raising broader concerns around consumer rights and fair trade practices.

Advance Tip Feature Sparks Concern

The core issue under review is the alleged pressure on users to tip drivers before a ride begins a model that suggests doing so may result in quicker pickup times.

This feature, which Uber first introduced, allows users to select predefined tip amounts (₹50, ₹75, ₹100) during the booking process, with a prompt that reads: “Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a tip.”

Consumer Affairs Minister Condemns Pre-Tip Practice

This system, now reportedly adopted by both Ola and Rapido, has triggered sharp reactions from users and government officials alike. Consumer Affairs Minister Pralhad Joshi, in a social media statement, condemned the approach, calling it both "unethical and exploitative." He emphasised that tipping should remain a voluntary expression of appreciation, given after service not a prerequisite for timely service.

Social Media Slams ‘Advance Tip’ as a Spreading Scam

The controversy has also ignited conversations across social media platforms. Many users have expressed frustration, arguing that the trend mirrors earlier tipping practices seen in Bengaluru’s auto-rickshaw segment, particularly with local apps like Namma Yatri. One user noted, “This whole 'advance tip' scam started with Bengaluru autos and was pushed by Namma Yatri. Now it's spread like a virus even Uber and Rapido have picked it up.”

The CCPA's investigation signals an increasing push for accountability and ethical conduct in the growing digital services space, especially as consumer experiences increasingly hinge on algorithm-driven decisions.

Read More: Uber Faces CCPA Notice for 'Faster Service' Advance Tip Feature.

Conclusion

The ongoing CCPA investigations into the ‘advance tip’ feature across major ride-hailing platforms highlight growing regulatory scrutiny over digital consumer practices. Investors, users, and industry watchers will likely keep a close eye on developments as authorities seek to ensure fair and transparent service standards in the evolving ride-sharing market.

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