Ride-hailing start-ups Ola and Rapido are also under probe by the Central Consumer Protection Authority (CCPA) along with Uber to investigate if they are forcing or nudging users to pay advance tips in exchange for faster service.
The CCPA is investigating apps like Olacab and Rapido, and they will be served notices if found engaging in such practices, Consumer Affairs Minister Pralhad Joshi said in a social media post. "The practice of 'Advance Tip' is deeply concerning," he stated.
"Forcing or nudging users to pay a tip in advance, for faster service, is unethical and exploitative. Such actions fall under unfair trade practices," the minister wrote.
This comes after CCPA issued a notice to Uber regarding its practice of prompting users to pay an advance tip for faster ride confirmations, Union Consumer Affairs Minister Pralhad Joshi announced on Wednesday.
Joshi, who also oversees the Ministries of Food and Public Distribution and New and Renewable Energy, described the practice as an “unfair trade” tactic and insisted it must be halted.
Posting on X, Joshi said, “The practice of ‘advance tipping’ is deeply concerning.” He stressed that tipping should be voluntary and based on a customer’s experience with the service provided.
“Forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative. 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,” he wrote.
“Taking cognisance of this, I asked the CCPA to investigate, and today the authority has issued a notice to @Uber, seeking an explanation from the platform,” he added.
Joshi also underlined the importance of fairness, transparency and accountability in consumer dealings.
Tip for Fast Pickup
When booking a ride via the Uber app, users are prompted to offer a tip of ₹50, ₹75, or ₹100 to potentially secure faster service. The app displays a message stating: “Add a tip for speedier pickup. If you leave a gratuity, the driver may be more inclined to accept the ride.” It further notes, “If you add a tip now, you can’t change it later,” and confirms that drivers receive the full tip amount.
Another ride-hailing service, Rapido, is reportedly engaged in a similar practice, requiring advance tips for quicker service. However, the government has not yet issued an official statement on Rapido, though sources indicate a preliminary inquiry could be initiated if comparable concerns are substantiated.
Both Uber and Rapido have denied allegations that their pricing varies based on the type of mobile phone used to book a ride.
This is not the first instance of regulatory attention for Uber. In January, the CCPA issued notices to both Uber and Ola following claims that the companies charged different fares for identical rides depending on whether the customer booked via an Android or iPhone device.
Uber Metro Ticketing
In other developments, Uber recently partnered with the Open Network for Digital Commerce (ONDC) to introduce metro ticketing services within its app, beginning with the Delhi Metro. Plans are in place to expand this feature to three additional Indian cities by the end of 2025.
“…working with ONDC has pushed us to reimagine how private innovation can plug into public platforms to deliver seamless, smart solutions — and we’re just getting started,” said Uber’s Chief Technology Officer, Praveen Neppalli Naga.
Expansion of Courier Services
Earlier in May 2025, Uber broadened its logistics services in India with the launch of Courier XL in Delhi NCR and Mumbai, facilitating the delivery of large consignments weighing up to 750 kg via three- and four-wheeler vehicles. This builds upon Uber’s existing Courier service, which enables parcel deliveries using two-wheelers in select cities.
