Central Government Issues Notice to Uber Over 'Pre-Ride Tip' Controversy

The central government has issued a notice to Uber after reports surfaced that the ride-hailing platform was encouraging passengers to pay a “pre-ride tip” to receive faster service. This practice has raised concerns within the Ministry of Consumer Affairs, prompting an investigation.

Union Minister for Consumer Affairs Prahlad Joshi condemned Uber’s actions on social media, stating, “Requesting or pressuring consumers to pay a pre-tip for faster service is unethical and amounts to extortion. Such actions fall under unfair trade practices.”

The controversy emerged when Uber reportedly promoted pre-ride tipping as a way to improve ride speed. The government views this practice as a violation of consumer rights and a breach of consumer protection laws.

In response, the Ministry has sent a notice to Uber seeking an explanation. Furthermore, early indications suggest that if other ride-hailing companies, like bike taxi service Rapido, are engaging in similar practices, they may also face scrutiny.

Sources say that if evidence shows Rapido is also encouraging pre-ride tips, the Central Consumer Protection Authority (CCPA) could initiate an inquiry. This could have far-reaching consequences for the business models of ride-hailing services nationwide.