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Uber, Ola, Rapido Under Scrutiny for Alleged Exploitative Tipping Model

Ride-hailing services Uber, Ola, and Rapido are under fire for their controversial “advance tipping” feature, which lets users add tips before booking rides in the hope of quicker pickups. The move has sparked criticism from users and caught the attention of the Central Consumer Protection Authority (CCPA), with Union Consumer Affairs Minister Pralhad Joshi calling it exploitative and unethical.

The CCPA has already issued a notice to Uber and is reviewing similar tactics used by Ola and Rapido. Concerns have been raised that this system pressures users into offering extra money just to get rides accepted promptly. While the platforms insist that tipping is optional, many users claim that without adding a tip, drivers tend to reject bookings — making the option feel more like a requirement.

The advance tipping model first appeared in 2022 through Namma Yatri, an app backed by the Karnataka government, before being adopted by Rapido in 2023 and Uber in April 2025. Critics say the practice mimics “dark patterns” and “drip pricing,” where consumers are subtly influenced to spend more, reducing pricing transparency.

The issue has fueled wider concerns over consumer rights and led to renewed calls for stronger regulations to curb unfair practices in digital ride-hailing platforms.

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