Government Likely to Probe Rapido Over Advance Tip Feature After Uber
After probing Uber, the government may investigate Rapido for allegedly nudging users to pay advance tips before rides, calling it an unfair trade practice.
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The Indian government is set to widen its scrutiny of ride-hailing platforms following concerns over advance tipping practices. After issuing a notice to Uber, bike-taxi app Rapido may be next in line for a probe if similar behavior is found, sources told India Today.
The Central Consumer Protection Authority (CCPA) is expected to launch a preliminary investigation to determine whether Rapido is nudging users to pay tips before availing services, a move that has sparked public and regulatory criticism.
This comes just days after Uber was served a 15-day notice by the CCPA, demanding an explanation for its app feature encouraging upfront tipping. Screenshots shared by Consumer Affairs Minister Pralhad Joshi showed prompts like "Add a tip for faster pickup," suggesting that a tip could influence a driver's willingness to accept a ride.
Calling the practice “deeply concerning,” Joshi stated on social media that “forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative,” and highlighted that such actions fall under unfair trade practices.
He emphasized that tipping should remain a voluntary gesture offered after the service is completed, not a pre-condition to access faster or better service. “Fairness, transparency, and accountability must be upheld in all customer interactions,” the minister added.
If Rapido is found to have implemented similar mechanisms, it could face regulatory action under consumer protection laws.
The government’s stance signals a tougher regulatory approach towards digital platforms that potentially misuse consumer trust or bypass ethical standards in service-based transactions.
