New Delhi, May 21, 2025 – In a significant development that could impact ride-hailing practices across India, the Central Consumer Protection Authority (CCPA) has issued a formal notice to Uber India regarding its controversial 'Advance Tip' feature, which allegedly offers faster service in exchange for upfront gratuity payments.
The feature, rolled out in select cities, allows users to pay a tip in advance before confirming a ride, with the implied benefit of being prioritized over other users. This has sparked widespread criticism, with government authorities, consumer rights groups, and users expressing concerns over fairness, transparency, and potential discrimination in service delivery.
“Deeply Concerning Practice,” Says Minister
Consumer Affairs Minister Pralhad Joshi publicly addressed the matter, stating:
"The practice of 'Advance Tip' is deeply concerning. It undermines the principle of equal service for all and exploits consumer urgency by monetizing priority access."
According to officials, the CCPA has sought a detailed explanation from Uber India regarding the implementation, user consent protocols, and the terms under which drivers are incentivized through this feature.
Consumer Protection at the Forefront
The notice is part of the government's broader push to uphold consumer rights in digital marketplaces. The CCPA is investigating whether the feature violates provisions of the Consumer Protection Act, 2019, particularly around unfair trade practices and misleading representations.
Sources close to the regulatory body have indicated that further action could be taken depending on Uber’s response. Penalties, temporary suspension of the feature, or new guidelines could be imposed if the company is found to have breached consumer protection norms.
Public Backlash and User Reactions
Social media platforms have seen a flurry of criticism from users who claim the feature creates a “pay-to-prioritize” model, which could sideline customers who choose not to tip in advance.
“I was shocked to see that I could get a ride faster just by paying extra in advance. Isn’t this supposed to be based on location and availability?” wrote one user on X (formerly Twitter).
Several consumer advocacy groups have already demanded that the feature be revoked, labeling it a form of digital discrimination.
Uber Responds
In a preliminary statement, Uber India stated that the feature is optional and intended to improve the driver-partner experience. The company emphasized that it is committed to complying with all regulatory requirements and will cooperate fully with the CCPA’s inquiry.
"We are reviewing the CCPA’s notice and will respond in due course. Our aim is to provide greater flexibility to both riders and drivers through this feature."
What Comes Next?
This case could set a crucial precedent for consumer protection in app-based services in India. With the rise of digital platforms and their increasing influence on daily life, regulatory scrutiny is expected to intensify in the months ahead.
Legal experts suggest that this could pave the way for stricter guidelines around algorithmic transparency, service prioritization, and digital fairness.
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