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The consumer protection regulator CCPA has launched an investigation into ride-sharing services Ola Cabs and Rapido regarding potential unfair trade practices involving ‘advance tipping’. This follows CCPA’s notice to Uber on Wednesday regarding allegations of pressuring customers to provide tips before service completion.Union consumer affairs minister Pralhad Joshi announced on X on Thursday: “CCPA is investigating other apps like Ola cabs and Rapido bike app, they will also be served notice if they are found indulging in such practices.”On Wednesday, Joshi had expressed serious concerns about the ‘advance tip’ system.The minister stated that compelling users to provide tips before service delivery constitutes unethical behaviour and exploitation. He emphasised that tipping should remain a voluntary gesture of gratitude after service completion, rather than a prerequisite for service.What is the feature under scrutiny?Uber had implemented a new “advance tip” functionality in its application that enables passengers to provide tips to drivers prior to confirming their journey, suggesting this might result in quicker service. The application suggests adding tips of Rs 50, Rs 75, or Rs 100 whilst making the booking, accompanied by the message, “Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a tip.” This was later taken up by Rapido and Ola as well.The introduction of this tipping system has sparked debates across social media platforms. A social media user commented, “This whole ‘advance tip’ scam started with Bengaluru autos and was pushed by Namma Yatri. Now it’s spread like a virus — even Uber and Rapido have picked it up.”
