Advance tips to drivers: Consumer Protection Authority issues notice to Uber on app feature
Bengaluru: The Central Consumer Protection Authority (CCPA) issued a notice on Wednesday to taxi booking app Uber regarding a feature where it prompts users booking rides to pay tips in advance to drivers.
In a post on his ‘X’ account, Union Consumer Affairs Minister Pralhad Joshi has expressed concern regarding the issue, saying it was unethical as well as exploitative of the agency to force or nudge users to tip the drivers in advance to ensure a faster service. He also clarified that the actions amounted to unfair trade practice, adding that a tip was given as a token of appreciation after the service rather than as a matter of right, according to a report by The Indian Express.
Joshi said that, taking cognizance of this, he had asked the CCPA to handle the matter, following which, the CCPA had issued a notice to Uber on Wednesday, demanding an explanation on the feature of advance tipping the drivers. The minister also stressed on the need to uphold fairness, transparency and accountability in all customer interactions.
While traditional tipping occurs after service and based on the quality of the service rendered to the customers, forward tipping is designated to incentivize the drivers to accept a ride by offering additional payment.
CCPA is known to have taken action against Uber following complaints by several users, who pointed out that the aggregators had been seeking ‘tips before trips’. The system was also found to be unchallenged by transport departments across states.
Urban mobility expert Satya Arikutharam has opined that, using the app feature, the customers were being forced often to pay tips only to book rides, adding that the system showed the drivers becoming unprofessional by accepting trips only if the consumers offered them tips.
Incidentally, Namma Yatri, the Bengaluru-based auto-hailing app that had been launched in November 2022, was among the first to introduce the advance tipping system in the ride-hailing ecosystem in India. The platform operates on a zero-commission model, where drivers keep 100 per cent of their base fares, and implemented tipping as an additional feature on its app. A year later, by late 2023, Rapido incorporated tipping into its service.
Uber was the latest ride-hailing firm to adopt this feature, having introduced advance tipping only last month. The app, however, introduced the post-service tipping globally back in 2017.
Sources have said that offering drivers tips upfront has become an industry norm with different names. Some platforms that did not pay 5 per cent GST claimed that they have a SaaS (Software as a Service) model and got drivers to earn more through tips. All members in the system, however, moved to this new model eventually, to avoid an unfair advantage, the sources added.
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DTC to take suggestions from bus drivers for route rationalisation plan
New Delhi (PTI): To strengthen its route rationalisation programme, Delhi transport minister Pankaj Singh on Wednesday directed officials to take suggestions from DTC bus drivers.
Singh held a review meeting of the study by the Delhi Transport Corporation (DTC), along with IIT Delhi, on its route rationalisation plan with transport department officials.
"The route rationalisation exercise must reflect the on-ground realities of Delhi's public transport system. By incorporating inputs from experienced DTC drivers, conductors, and depot managers, we can significantly enhance last-mile connectivity and improve the overall passenger experience," Singh said.
The transport minister emphasised the importance of inclusive and data-driven planning, as well as leveraging the experience of DTC personnel in the ongoing exercise for 9-meter DEVI electric buses.
Currently, a comprehensive study is being undertaken by IIT Delhi, ensuring a robust, data-driven, and optimised redesign of Delhi's bus network to improve accessibility and service quality.
"The route rationalisation covers 121 routes in the East Zone, 181 routes in the West Zone, and 194 routes in the North Zone, as well as ongoing exercise of the South Zone," an official said.
The transport minister also informed that DTC's interstate electric bus services have received an encouraging response from commuters.
"The positive response to interstate electric buses reinforces our commitment to expanding clean and sustainable mobility solutions beyond Delhi. We are now planning to extend services to additional routes such as Delhi-Rewari, Delhi-Karnal, Delhi-Alwar, and Delhi-Jewar," he added.
Currently, inter-state services are operational on routes including Delhi-Baraut (Uttar Pradesh), Delhi-Sonipat, Delhi-Dharuhera, Delhi-Panipat (Haryana), and Nanaksar-Ghaziabad Bus Terminal in Uttar Pradesh.
