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

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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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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.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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