Tip us first: Why new Uber push faces authorities ire

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Why are cabs pushing for advance ideas?

They ask customers to tip drivers earlier than reserving a trip in change for quicker service. Apparently that is to compensate drivers for frequent cancellations by riders. Ride cancellations have been the most important pain-point in India’s mobility sector for years. To be certain, it really works each methods: 84% of app taxi customers face cancellations when drivers are instructed the locations and the popular digital cost methodology, in response to LocalCircles. It additionally found that the difficulty has intensified within the final two years. A assured tip upfront would possibly make drivers extra more likely to settle for and full rides.

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Is Uber alone on this controversy?

No, Uber was truly late in introducing this characteristic. Bengaluru-based mobility startup Namma Yatri, launched in November 2022, was among the many first to introduce advance tipping in India’s ride-hailing ecosystem. The characteristic prompts customers through the reserving course of so as to add a tip of ₹20, ₹50, ₹75 or ₹100, suggesting {that a} driver could also be extra more likely to settle for the trip if a tip is added. Following Namma Yatri, Rapido included advance tipping into its service by late 2023. Ola additionally provided an possibility so as to add an advance tip, with out suggesting a quicker trip. Uber launched this characteristic solely in April 2025.

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How does tipping work globally?

India is an outlier with this experiment. Globally, Uber’s normal apply has been to immediate customers to tip drivers after the trip is accomplished. The introduction of pre-ride tipping in India marks a departure from this norm. Other worldwide cab aggregator corporations together with Lyft and Bolt, amongst others additionally allow tipping—however solely after the trip ends.

Why has the federal government stepped in?

The CCPA despatched a discover to Uber after a directive from meals and shopper affairs minister Pralhad Joshi, who known as the apply unethical and exploitative, elevating considerations about shopper rights. A tip is given as a token of appreciation, not as a matter of proper, after the service, he mentioned. The argument is that the pay-to-prioritize mannequin places strain on riders to pay further. Reflecting broader scrutiny, the CCPA additionally pulled up Ola and Uber this yr over fees of differential pricing for iOS and Android customers.

Are there any guidelines on journey cancellations?

The Motor Vehicle Aggregator Guidelines (2020), launched a penalty of 10% of the fare capped at ₹100 for cancellations by riders or drivers. But its enforcement has been inconsistent. In a primary, Maharashtra on Tuesday got here out with a coverage offering for a ten% penalty on drivers and 5% on riders for cancellations. Other states, corresponding to Karnataka, have carried out aggregator rules specializing in licensing and operational pointers, with out particularly addressing cancellation penalties.