Commuters urge probe into Namma Yatri over ‘advance tipping’ practice
Bengaluru: As the Central Consumer Protection Authority (CCPA) probes ride-hailing platforms Ola and Rapido over alleged unfair trade practices linked to their ‘advance tipping’ feature, Bengaluru commuters are calling for the investigation to extend to other platforms, particularly the homegrown Namma Yatri app.
Users allege that Namma Yatri was among the first to introduce the practice in the city and continues to prompt passengers to add tips during peak hours to secure rides. The feature, they say, often feels less like a voluntary gesture and more like a necessity to access services.
On May 21, Union Consumer Affairs Minister Pralhad Joshi had directed the CCPA to issue a notice to Uber for its use of advance tipping, where riders are encouraged to tip drivers during the booking process, rather than after the ride. A day later, he confirmed that Ola and Rapido would also be issued similar notices. “These tactics are deeply concerning and qualify as unfair trade practices,” Mr. Joshi said.
According to a report published by The Hindu, frequent users in Bengaluru allege that Namma Yatri has made ride confirmation difficult without tipping. “Sometimes, the app refuses to find a ride unless you add a tip. This defeats the purpose of a voluntary contribution,” said Bhuvan Rao, a resident of Jalahalli.
Another commuter from JP Nagar said she had multiple instances where rides were confirmed only after adding a ₹20 tip. “It feels like we’re being manipulated into tipping just to get basic service,” she said.
Sharing a similar experience while booking a ride for his elderly mother, Ravi Prakash from Indiranagar said “Even after adding a ₹50 tip, we had to wait. There’s no transparency on whether the tip actually goes to the driver.”
Interestingly, following the Centre’s scrutiny of other apps, Namma Yatri modified its in-app prompt from ‘Add a tip’ to ‘Add more (voluntary) to find a ride.’ However, users claim the change is only cosmetic, with the underlying pressure unchanged.
Drivers too say they remain unaware of tip amounts. “We don’t see a breakdown. If the customer pays a tip, we don’t know. As far as we’re concerned, it’s not reaching us,” said Puneeth Kumar, an auto driver from Rajajinagar.
In response, Namma Yatri COO Shan M. S. said the app’s ‘Add More’ feature is voluntary and part of a transparent, community-driven model. “Namma Yatri takes no commission and has no stake in the final fare. The optional feature helps recognise drivers’ extra efforts during long waits or peak hours,” he said. The company also stated that no formal complaints had been received regarding the feature.
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K'taka remains central to Aequs' strategy, says min Patil amid row over firm's investment in TN
Bengaluru (PTI): Karnataka Commerce and Industries Minister M B Patil on Monday asserted that Aequs continues to expand in the state and that its proposed investment in neighbouring Tamil Nadu was a business decision aimed at diversification, not a shift away from Karnataka.
Reacting to criticism on social media over reports that the Karnataka-based firm had signed a major investment deal in Tamil Nadu's Krishnagiri district for setting up a specialised aerospace and defense manufacturing cluster, he said the state government was fully aware of the company's plans and remained confident about its long-term commitment to Karnataka.
"While we welcome every major investment in India, would like to clarify a few points," Patil said in a post on 'X'.
Aequs was significantly expanding its footprint within Karnataka, including a Rs 3,000 crore investment in Kolar for electronics manufacturing.
"Its recently approved Rs 1,500 crore ECMS project will also be grounded in the state. Karnataka remains central to its long-term strategy," he said.
Patil added that the government had prior knowledge of the TN proposal.
The government was already informed and aware that the TN investment is a business decision aimed at geographic diversification and de-risking operations, not a shift away from Karnataka.
"Healthy competition between states strengthens India's manufacturing ecosystem," he said.
Emphasising the state's focus on high-technology sectors, Patil said, "We remain committed to deepening Karnataka's leadership in aerospace and advanced manufacturing, and our engagement with industry partners is strong and ongoing."
The Aequs Group has pledged Rs 4,000 crore to bolster Tamil Nadu's aerospace manufacturing capabilities at the SIPCOT-Shoolagiri Industrial Park in Krishnagiri district.
The group proposes to establish a specialised aerospace and defense manufacturing cluster for the production of aircraft engines, gearbox components, and precision engineering parts. This initiative is expected to provide employment to 7,000 individuals.
