FPJ Analysis: Uber’s Blackmail Called Tip

The Central Consumer Protection Authority (CCPA) has done well to issue a notice to Uber India over its questionable practice of soliciting tips in advance from customers. Uber, a popular ride-hailing platform that connects passengers with drivers via a mobile app, has become a household name in urban India. But its recent move to push users into offering tips before even confirming a ride has angered tens of thousands of its clients — and for good reason. A tip, by definition, is a voluntary amount given to a service provider as a token of appreciation for good service rendered. In restaurants, for instance, it is the waiter who receives the tip, based on the diner’s satisfaction. The practice is universally understood to be optional, discretionary, and post-service. What Uber is doing now turns this notion completely on its head in an outrageous display of manipulation.

Here’s what happens. When a user opens the Uber app to book a ride, a message appears saying, “Plenty of drivers are available in your area.” Then three tip options appear, starting at ₹30. Along with this is Uber’s “advice” — offer a tip in advance and your ride might arrive faster. Otherwise, keep waiting. If you choose to wait, you may be assigned a driver, but in many cases, the driver will cancel. You’ll be assigned another, who may or may not show up. The cycle can go on for as long as half an hour, if not more. This effectively coerces customers into tipping even before they’ve met the driver, let alone experienced his service. Worse, Uber says an advance tip, once given, cannot be withdrawn under any circumstances. This is not a tip. This is blackmail dressed up as customer service, disguised in polite language but rooted in pressure tactics.

The whole idea behind services like Uber was convenience, reliability, and fairness. Users flocked to ride-hailing apps because they brought structure and accountability to an otherwise chaotic transport system. But Uber’s advance tip scheme violates the very principles on which it built its user base. Union Minister Prahlad Joshi has rightly pointed out that this practice undermines fairness, transparency, and accountability. In a country where tipping is not culturally ingrained, Uber’s demand smacks of extortion and outright manipulation. When you pressure someone to pay in order to get what you’ve already promised — that’s not a tip, it’s a bribe. Demanding or accepting a bribe is illegal. By turning tips into a mandatory pre-condition for service, Uber is indulging in unethical and possibly illegal behaviour. The CCPA must not stop with a notice. It should ensure that Uber rolls back this exploitative feature immediately. Consumer protection is not optional. Neither is integrity.

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