Uber Faces CCPA Notice for 'Faster Service' Advance Tip Feature

The Central Consumer Protection Authority (CCPA) has issued a notice to Uber over a controversial practice observed within its ride-booking app. According to Union Consumer Affairs Minister Pralhad Joshi, the platform has allegedly been encouraging users to tip drivers in advance to potentially receive quicker pick-up services. Joshi described this approach as both unethical and exploitative.

The Minister expressed his concerns publicly, stating that tipping should be a voluntary gesture offered post-service as a token of appreciation, not a precondition for improved service quality. The CCPA notice seeks an official explanation from Uber regarding this practice.

What the Uber App Displays to Users

When booking a ride on Uber, users are reportedly shown an option to offer a tip of ₹50, ₹75 or ₹100. The app message suggests that offering a tip in advance might increase the chances of quicker driver acceptance. The notification reads: "Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a tip."

It further adds that the tip, once selected, cannot be changed and is passed entirely to the driver. This prompt appears to position the tip not as a reward but as a means to influence service speed, which has led to the current scrutiny.

Previous Allegations of Differential Pricing

This is not the first time Uber has faced questioning from Indian authorities. Earlier in January, the CCPA sent notices to both Uber and Ola regarding complaints about price variations based on the type of mobile device being used to book the ride.

Specifically, concerns were raised that customers using iPhones were charged differently than those using Android phones for the same routes. Both companies denied the allegations and claimed that their pricing mechanisms did not consider the operating system of the user’s phone.

Uber’s Recent Tie-Up with ONDC

In a separate development, Uber has partnered with the Open Network for Digital Commerce (ONDC) to enable metro ticket bookings through its app. The service currently lives in the Delhi-NCR region and allows users to purchase QR code-based metro tickets directly from the Uber platform.

This initiative marks the first instance of Uber providing metro ticketing in India. The partnership also extends to logistics. Uber’s Courier XL service, already operational in Delhi-NCR and Mumbai, is now accessible to businesses through the ONDC network. This opens the door for non-Uber app users to leverage Uber’s last-mile delivery services.

Read More: Uber Expands Digital Offerings with ONDC Partnership. 

Conclusion 

While Uber continues to expand its services in India through digital partnerships and logistics innovations, the notice from the CCPA brings to the forefront a crucial debate about fairness and ethics in platform-driven economies. The outcome of the inquiry may have wider implications for how ride-hailing and other gig economy services operate within the consumer rights framework.
 

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