Ride-Hailing Apps Under Scrutiny for 'Advance Tipping'

The Central Consumer Protection Authority (CCPA) has launched an investigation into prominent ride-hailing services such as Ola Cabs and Rapido. This initiative aims to determine whether these platforms are engaging in the unfair trade practice of requesting 'advance tipping' from their users.

On Wednesday, the CCPA issued an official notice to Uber, accusing the company of allegedly 'forcing or nudging' users into paying advance tips in exchange for faster service. The investigation suggests significant concerns about consumer rights and ethical business practices.

Union Consumer Affairs Minister Pralhad Joshi emphasized that tipping should serve as a token of appreciation provided after a service is complete, not as a requirement beforehand. The minister labeled the practice of 'Advance Tip' as both unethical and exploitative, highlighting its classification as an unfair trade practice.

(With inputs from agencies.)