Consumer Protection Regulatory CCPA has initiated an investigation into riding services Ola Cabs and Rapido about the possible improper trade practices associated with ‘advance tipping’. This service follows CCPA notice to Uber on Wednesday about allegations of pressurizing customers to suggest before completion of service.Union Consumer Affairs Minister Pralhad Joshi announced on X on Thursday: “CCPA is examining other apps like Ola Cabs and Rapido Bike App, if he is found involved in such practices, they will also be given notice.”On Wednesday, Joshi expressed serious concern about the ‘advance tip’ system.The minister said that forcing users to constitute immoral behavior and exploitation to suggest before service distribution. He emphasized that tipping should be a voluntary gesture of gratitude after completion of service rather than a condition for service.What is the facility under investigation?Uber implemented a new “advance tip” functionality in his application that enables passengers to suggest drivers before confirming their journey, suggests that it may result in a quick service. The application suggests to add a tips of Rs 50, Rs 75 or 100 rupees while booking along with booking, “Add a tip for rapid pickup. A driver may be more likely to accept this ride if you add a tip.“It was later taken by Rapido and Ola.The introduction of this tipping system has created a debate in social media platforms. A social media user commented, “The entire ‘advanced tip’ scam began with Bengaluru Autos and was pushed by the Namma traveler. Now it has spread like a virus – even Uber and Rapido have picked it up.”
