Centre Asks Ola, Uber, Rapido To Do Away With Advance Tipping Option

The government has directed cab aggregators to discontinue the practice of offering consumers an option to tip drivers before a ride is booked, Consumer Affairs Secretary Nidhi Khare said on Wednesday, terming the practice misleading and an unfair trade practice.Khare said the National Consumer Helpline had received several complaints from consumers regarding taxi and ride-hailing aggregators. One of the key concerns was the introduction of an advance tipping option before the consumer had even taken the ride.According to the secretary, consumers had alleged that they were being encouraged to pay a tip in advance and were made to believe that failing to do so could affect their ability to secure a ride."We found this to be misleading and also an unfair trade practice," Khare said, adding that following a detailed investigation and hearing, the authorities had ordered the discontinuation of the built-in mechanism.Khare, who also heads the Central Consumer Protection…
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in