Ola, Rapido under CCPA scrutiny over advance tipping practices

India's Central Consumer Protection Authority (CCPA) has broadened its investigation into the 'advance tipping' features employed by ride-hailing services, now encompassing domestic platforms Ola Cabs and Rapido. This development follows a recent notice issued to Uber regarding similar practices.

In a social media post, Union Consumer Affairs Minister Pralhad Joshi confirmed the expanded probe, emphasizing that any platform found engaging in such practices would be served notice. The CCPA's scrutiny centers on whether these features pressure users into tipping drivers upfront, potentially influencing ride acceptance and prioritization.

It is to be noted that suggesting faster service in exchange for an advance tip may constitute an unfair trade practice, compromising transparency and consumer rights. The CCPA aims to assess if such mechanisms mislead or unduly influence consumer decisions, ensuring that digital platforms uphold fairness and accountability in their operations.

The Minister 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 now also examining similar practices by other players, including Rapido and Ola.