Online cab booking platform Uber has suffered a major setback from the government. Central Consumer Protection Authority (CCPA), which works under the Union Ministry of Consumer Affairs, has sent a notice to Uber. The reason is the feature of Uber, in which the user is asked to give ‘Advance Tip’, so that they get ride fast.

‘Advance Tip’ system told wrong

Taking the matter seriously, Union Minister Prahlad Joshi described it as “immoral” and “exploitative”. He said that tip is a token that is given after being satisfied with service, not forcibly sought before the service starts. He called it a kind of “Unfair Trade Practice”.

What does this feature of Uber say?

When a user books a ride on the Uber app, he is given an option in which he can get a fast pickup by giving an advance tip of Rs 50, Rs 75 or Rs 100. It is written on the app, “Add a tip for faster pickup. A driver may be more likely to accept this ride if you add a tip.” Along with this, it is also clarified that the driver will be given full amount of tip, but once the tip given cannot be changed later.

Government sought answers

Posting on X, Union Minister Prahlad Joshi wrote that he had brought the entire matter to the notice of CCPA, after which a notice has been issued to Uber and sought a reply. He wrote, “There should be transparency, fairness and accountability in the practice of customers.” There is no official response to this notice from Uber so far.

Uber and Ola have come in the past too

This is not the first time that Uber has received notice from the government. In January 2024, notice was also issued to both Uber and Ola. Then he was accused that separate fare is being charged based on the mobile operating system (Android or iOS) of the users for the same ride. The government still expressed concern by calling it “differential pricing”. However, both companies denied any such allegations.

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