Ride-hailing platforms like Uber, Ola, and Rapido are now asking users to tip in advance, promising ‘faster rides’ in return.
HYDERABAD: When Sindhu Reddy booked a cab recently, she was annoyed to see a pop-up asking her to tip the driver before the ride even began. “The app asks us to pay extra even before the service begins. How is that fair,” she questioned. Like her, many users feel forced to add a tip, even though it is labelled as ‘optional.’
Ride-hailing platforms like Uber, Ola, and Rapido are now asking users to tip in advance, promising ‘faster rides’ in return. While the companies claim the feature is voluntary, users and officials say this practice is ‘unethical.’
Union minister of consumer affairs Pralhad Joshi took note of this practice on Wednesday, saying in a post on his ‘X’ handle: “Forcing or nudging users to pay a tip in advance, for faster service is unethical and exploitative. Such actions fall under unfair trade practices… Tip is a token of appreciation, not a right, and should be given after service.”1
Following this, the (CCPA) issued a notice to Uber and is now also investigating Ola and Rapido. Pralhad Joshi confirmed that they too will be served notices if found guilty of similar practices.
While the consumer commission clarified that advance tipping is not illegal since users are informed and still choose to pay, many argue that this system plays on people’s urgency and guilt. “I felt guilt-tripped many times. Since I was in a hurry, I added the tip but felt bad later,” said G. Tejashwini, an IT employee.
Veena Sunkara, another frequent user, said the app’s tip prompts make her feel guilty. “I usually tip based on how good the ride was. This system is frustrating,” she said. Sindhu Reddy, a student added, “Prices are already high. Why should we be forced to tip before even getting the service?”
Some users say they don’t even know if the tip goes to the driver. “There’s no transparency. If I knew it went directly to the driver, I’d be okay with it,” said Tejashwini. Sindhu Reddy said users should be clearly told how the tip is used.
Narayana Reddy, a member of the Hyderabad District Consumer Commission, said, “As long as the tip is shown beforehand and added voluntarily, it’s not illegal. However, companies seem to be cashing in on emergencies.” Another commission member, who chose to remain anonymous, said they could be using “dark patterns,” which are manipulative app designs that pressure users.
Advocate Jatin Bansal said, "While the tipping feature is technically optional and may not qualify as an unfair trade practice under the law, it caters primarily to those who can afford to tip. Those who can't may end up receiving delayed or substandard service, which creates an indirect bias."
Shaik Salahuddin, president of Telangana Gig and Platform Workers Union, said aggregators must be transparent. “Tips should be a way to reward the driver for their service, but the way apps are handling it lacks transparency. When a customer adds a tip before the ride, the total fare increases, but the driver doesn’t even know if a tip was added.”
Salahuddin demanded that aggregator business models must show a clear break-up of the fare, base fare and tip both to the driver and the customer. The government should take charge and maintain fixed prices. If ride-hailing companies are acting as intermediaries, there should be fixed rates and clear disclosures to prevent exploitation of both drivers and consumers.”
R. Narasimha Naik, an autorickshaw driver, said, "For a 30-kilometre ride, we sometimes earn only `300. The base fares are too low, which might be why tipping has been introduced. But we are not even notified when a tip has been added. Moreover, some users book two rides simultaneously and don’t cancel the extra one, wasting our time. Others set a closer drop location but later ask to be taken much farther, and we still receive the same fare. It’s unfair to us."
The issue has sparked outrage on social media. Responding to Joshi’s tweet, one user wrote, “The ride hailing app is asking me to tip just seconds after booking a ride, not a minute-long wait was required for the app to suggest tipping. Do the tips go to the drivers alone, or does the company take a share in it too, apart from the aggregator percentage?”
Another user wrote, “Thanks for taking this up. This is a nonsensical practice by the operators. They loot people by charging exorbitant fares and now this practice of advanced tips should be banned and these jokers should be penalised.”
