Pay More To Ride Faster? Here’s Why Uber’s ‘Advance Tip’ Feature Has Sparked Major Backlash

New Delhi: The Central Consumer Protection Authority (CCPA) has issued a notice to Uber after the cab-aggregator platform was found nudging users to pay ‘advance tips’ for faster ride confirmation, Union Minister for Consumer Affairs Pralhad Joshi said on Wednesday. Calling the practice “deeply concerning”, the minister said it violates basic principles of fairness and amounts to unfair trade practices.

Tip Is a Token, Not a Ticket: Minister Hits Out at Uber

In a strong post on X (formerly Twitter), Joshi condemned the practice, saying, “Forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative. Such actions fall under unfair trade practices. A tip is given as a token of appreciation, not as a matter of right, after the service.”

Joshi stressed that the integrity of digital platforms must be maintained, and that tipping should remain a voluntary gesture post-service, not a precondition to get faster service.

Notice Issued, Uber Asked to Respond

Acting on the minister’s direction, the CCPA which functions under the Ministry of Consumer Affairs issued a formal notice to Uber, seeking an explanation for the feature. As of now, Uber has not responded to the allegations or the notice publicly.

Joshi reiterated that “fairness, transparency, and accountability” must be central to customer interactions in the digital economy.

In-App Prompt Sparks Outrage

Uber’s app currently prompts users to add a tip of Rs 50, Rs 75, or Rs 100 before confirming a ride, stating: “Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a tip.” It also mentions that 100% of the tip goes to the driver, and that once added, the tip cannot be changed later.

The prompt has sparked criticism, with many users calling it a pay-to-prioritize model disguised as tipping a move that could pressure riders into paying more out of fear of delays.

Not Uber’s First Brush with Regulators

This isn’t the first time Uber has come under government scrutiny. In January this year, both Uber and Ola received notices from the CCPA over complaints of differential pricing based on users’ mobile operating systems charging more for iOS users compared to Android users for the same route.