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Cab Apps Face Probe Over 'Forced' Driver Tips
16 Sep
Summary
- Government orders ride apps to stop advance tipping immediately.
- Advance tipping practice deemed misleading and unfair by authorities.
- Investigations are ongoing for Uber and Ola regarding tipping policies.
Ride-hailing services are under scrutiny for implementing advance tipping options before rides are booked. Consumer Affairs Secretary Nidhi Khare announced that the government has ordered cab aggregators to discontinue this practice, deeming it misleading and unfair to consumers.
The Central Consumer Protection Authority (CCPA) is actively examining the business models of prominent platforms such as Uber and Ola. This action follows a recent Rs 10 lakh penalty imposed on Rapido for similar unfair business practices, including mandatory advance tips.
Consumers had reported being pressured to tip beforehand, with allegations that rides might be denied without such payments. Khare clarified that tipping is entirely voluntary and should be at the consumer's discretion after the ride is completed. Investigations into Uber and Ola's tipping policies are presently in progress.
