The government has ordered cab aggregators to stop providing advance tipping options even before booking a ride as the practice is misleading and unfair, Consumer Affairs Secretary Nidhi Khare said on Wednesday.
The secretary’s comment comes a day after the Central Consumer Protection Authority (CCPA) slapped a Rs 10 lakh penalty on ride-hailing platform Rapido for various unfair business practices, including advance tipping for drivers.
The authority is currently examining the business practices of Uber and Ola. Responding to queries related to taxi ride aggregators, Khare on Wednesday said the National Consumer Helpline has received a lot of complaints against them.
“(Consumers were) basically alleging that actually even before taking the ride, there was a concept of introducing an advance tip,” she said, adding that consumers were being cajoled that unless they pay the tip, they will not get the ride.
“Now this we found to be misleading and also an unfair trade practice. And af
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