CCPA flags Uber’s ‘advance tip’ feature as unfair trade practice

The Central Consumer Protection Authority (CCPA) has issued a notice to Uber over its “advance tip” feature, calling it an unethical and unfair trade practice. The ride-hailing platform is under scrutiny for allegedly nudging users to pay tips upfront in exchange for faster service.

Consumer Affairs Minister Pralhad Joshi addressed the issue on social media platform X, saying,

“Forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative. Tip is a token of appreciation—not a precondition for service.”

The CCPA has reportedly also asked Uber to respond to the notice within 15 days. The regulator is also examining similar practices by other players, including Rapido and Ola.

Consumer affairs secretary and CCPA chief commissioner Nidhi Khare earlier told media that such features manipulate user decisions and pressure consumers into making payments under the assumption of receiving better service.

It is to be noted that Uber introduced “upfront tipping” in its app in November 2024, claiming the feature boosts driver earnings and helps secure faster ride matches during peak hours. According to the app,

“A driver may be more likely to accept this ride if you add a tip. Your driver receives 100% of the tip. If you add a tip now, you can’t change it later.”

Uber has yet to respond publicly to the CCPA’s notice.

Advance tipping is becoming a norm across ride-hailing platforms, with several companies having rolled out similar features since 2023. These practices, however, now risk regulatory pushback as consumer authorities weigh their fairness and transparency.

“Fairness, transparency, and accountability must be upheld in all customer interactions,” Joshi emphasized.

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