Centre issues notice to Uber over 'advance tip' feature, says it promotes unfair trade practices

Union Minister of Consumer Affairs Pralhad Joshi has taken strong exception to Uber’s practice of encouraging users to pay an "advance tip" for faster cab bookings. Calling it unethical and exploitative, he confirmed that the Central Consumer Protection Authority (CCPA) has issued a formal notice to the ride-hailing platform seeking an explanation.

The minister emphasized that tipping is meant to be a voluntary gesture of appreciation after a service has been rendered — not a tool to accelerate basic service delivery. Highlighting fairness and transparency as core consumer rights, he said such nudging tactics amount to unfair trade practices.

While using the Uber app, users are prompted to pay a tip in advance — ranging from ₹50 to ₹100 — with the message that doing so may help in securing a quicker pickup. The platform claims that 100% of the tip goes to the driver, but users are also informed that once paid, the tip cannot be modified or revoked.

This isn’t the first time the Centre has flagged concerns with Uber’s business practices. Earlier this year, the CCPA had also issued notices to both Uber and Ola over suspected differential pricing for the same rides based on whether the user was on an Android or iOS device — an allegation both companies denied.

With increasing scrutiny on app-based services, the Centre is expected to press for greater accountability from digital platforms in how they interact with and treat consumers. The Uber notice marks another step in tightening regulation over emerging online business models that blur ethical lines in user engagement.