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Govt provides Uber 15 days to reply on advance ideas for rides; Rapido could face related probe


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The Centre has issued a discover to ride-hailing platform Uber, giving it 15 days to reply on the difficulty of gathering ideas upfront to safe a journey. Sources informed Enterprise At the moment {that a} related preliminary inquiry in opposition to Rapido could also be initiated if related conduct is discovered.

“Advance tipping creates an unfair bias in service supply and is being examined as a possible manipulation of client rights,” a senior official informed BT TV, including that the federal government is reviewing app-based journey fashions to make sure client curiosity is protected.

The Central Client Safety Authority (CCPA) has issued a discover to Uber for its ‘advance tip’ function, which permits customers to pay tricks to drivers earlier than reserving rides. Uber presents the “advance tip” immediate within the reserving course of to immediate customers to pick a gratuity quantity previous to starting the journey.

After issuing a discover to Uber, the federal government is now prone to flip its consideration to Rapido over related allegations of asking for ideas upfront to safe rides. 

Authorities sources informed BTTV {that a} preliminary enquiry in opposition to Rapido may very well be initiated whether it is discovered to be indulging in related practices. “We may take a look at extra journey hailing firms,” the supply added.

In a publish on X, Union Minister for Client Affairs Prahlad Joshi expressed concern over this observe, stating that forcing or encouraging customers to pay a tip upfront for faster service is unethical and exploitative. Joshi emphasised that ideas ought to be given as a token of appreciation, not as a requirement for service. Such actions are thought-about unfair commerce practices in line with the CCPA.

“Taking cognisance of this, I had requested CCPA to look into it and immediately, CCPA has issued a discover to Uber on this regard, looking for an evidence from the platform. Equity, transparency and accountability should be upheld in all buyer interactions,” Joshi added.

Joshi’s publish included a screenshot from the Uber app displaying the superior tipping choice with the message, “Including a tip could improve the probabilities of a driver accepting this journey.”.