The Central Consumer Protection Authority (CCPA) on Thursday launched an investigation for cab-hailing platforms, including Ola, Uber and Rapido after concerns raised over ‘advance tip’ feature that may constitute an unfair trade practice.
The probe comes in the wake of similar action initiated against Uber, which has already been issued a notice.
Union Minister Pralhad Joshi said the practice “deeply concerning,” and stressed that it undermines consumer rights by pressuring users into additional payments before a service is rendered.
“Forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative,” Joshi stated.
“Such actions constitute unfair trade practices. A tip is a token of appreciation, not an obligation, and should only be offered after the service is rendered.”
After this, the CCPA issued a notice to Uber, and Minister Joshi confirmed that similar scrutiny is now being extended to other platforms such as Ola and Rapido.
“The CCPA is investigating other apps like Ola and Rapido. They will also be served notice if they are found indulging in such practices,” he said.
This is not the first time ride-hailing platforms have come under the consumer watchdog’s lens.
In January, the CCPA had also issued notices to both Uber and Ola following allegations that ride fares varied depending on whether the booking was made via an Android or iPhone device.
Both companies denied any discriminatory pricing based on the type of mobile device used.
