Rideshare companies in India are asking for tips before the trip
(2025/05/23)
- Reference: 1747973714
- News link: https://www.theregister.co.uk/2025/05/23/tiup_before_rideshare_uber_controversy/
- Source link:
India’s consumer affairs minister has criticized Uber for adding a feature that allows users to tip their driver before a trip as an incentive to take a job.
The tip-first, ride-later scheme reportedly landed in Uber’s Indian app this week, but it’s not a new idea. A local Uber-like service called Namma Yatri appears to have introduced it in 2024 as an alternative to “surge pricing”, Uber’s practice of charging more for rides when demand is high.
Nudging users to pay a tip in advance for faster service is unethical and exploitative
Unlike Uber and other rideshare services, Namma Yatri doesn’t get commission for each trip. It instead charges drivers a daily access fee of ₹INR 25 ($0.30) that covers unlimited rides, or a per-ride fee of ₹INR 3.5 ($0.04), to access its platform. The entire fare goes to the driver.
The company unashamedly admits the tip-first, ride-later scheme is “designed to encourage quicker ride acceptance”. Some riders don’t like the scheme as they [1]feel it’s created a situation akin to an auction in which they have to guess at how much they’ll need to tip to attract a driver’s interest. Namma Yatri says it’s trying to improve the scheme.
Other Indian ride-share companies have adopted tip-first, ride-later, and experienced some rumblings of discontent.
[2]
Complaints became far louder this week after Uber’s Indian operation added the feature to its app.
[3]India investigates whether Uber makes iPhone users pay more to ride
[4]India's Uber clone Ola Cabs hails ride out of the international market
[5]Ancient art of banning rideshare companies revived in India, this time on motorbikes
[6]Indian government accuses Uber of jacking up prices for loyal customers
Consumer affairs Minister Pralhad Joshi got wind of the scheme and took to X to voice his disapproval.
“The practice of 'Advance Tip' is deeply concerning,” he wrote on Wednesday. “Forcing or nudging users to pay a tip in advance, for faster service is unethical and exploitative. Such actions fall under unfair trade practices. Tip is given as a token of appreciation not as a matter of right, after the service.”
[7]
[8]
The minister ordered India’s Central Consumer Protection Authority to look into it, and the regulator hailed Uber’s legal team and asked them to deliver a please explain.
“Fairness, transparency and accountability must be upheld in all customer interactions,” the Minster added.
[9]
Which gets The Register wondering why the Minister wasn’t angry when Namma Yatri introduced this scheme last year.
India’s government promotes home-grown tech and has a complex relationship with Big Tech which sees it court the likes of Uber for collaborations and investment while also regulating fiercely.
We’ve asked Uber for comment and will update this story if the company responds. ®
Get our [10]Tech Resources
[1] https://x.com/nammayatri/status/1910562031373107415
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aDBHPesJ7udKQ62d5980rQAAAUU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2025/03/14/india_rideshare_differential_pricing_investigation/
[4] https://www.theregister.com/2024/04/11/ola_exits_international_markets/
[5] https://www.theregister.com/2023/02/23/in_blow_to_ridesharing_apps/
[6] https://www.theregister.com/2022/05/11/indian_government_ridesharing_regulation_crackdown/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aDBHPesJ7udKQ62d5980rQAAAUU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aDBHPesJ7udKQ62d5980rQAAAUU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aDBHPesJ7udKQ62d5980rQAAAUU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://whitepapers.theregister.com/
The tip-first, ride-later scheme reportedly landed in Uber’s Indian app this week, but it’s not a new idea. A local Uber-like service called Namma Yatri appears to have introduced it in 2024 as an alternative to “surge pricing”, Uber’s practice of charging more for rides when demand is high.
Nudging users to pay a tip in advance for faster service is unethical and exploitative
Unlike Uber and other rideshare services, Namma Yatri doesn’t get commission for each trip. It instead charges drivers a daily access fee of ₹INR 25 ($0.30) that covers unlimited rides, or a per-ride fee of ₹INR 3.5 ($0.04), to access its platform. The entire fare goes to the driver.
The company unashamedly admits the tip-first, ride-later scheme is “designed to encourage quicker ride acceptance”. Some riders don’t like the scheme as they [1]feel it’s created a situation akin to an auction in which they have to guess at how much they’ll need to tip to attract a driver’s interest. Namma Yatri says it’s trying to improve the scheme.
Other Indian ride-share companies have adopted tip-first, ride-later, and experienced some rumblings of discontent.
[2]
Complaints became far louder this week after Uber’s Indian operation added the feature to its app.
[3]India investigates whether Uber makes iPhone users pay more to ride
[4]India's Uber clone Ola Cabs hails ride out of the international market
[5]Ancient art of banning rideshare companies revived in India, this time on motorbikes
[6]Indian government accuses Uber of jacking up prices for loyal customers
Consumer affairs Minister Pralhad Joshi got wind of the scheme and took to X to voice his disapproval.
“The practice of 'Advance Tip' is deeply concerning,” he wrote on Wednesday. “Forcing or nudging users to pay a tip in advance, for faster service is unethical and exploitative. Such actions fall under unfair trade practices. Tip is given as a token of appreciation not as a matter of right, after the service.”
[7]
[8]
The minister ordered India’s Central Consumer Protection Authority to look into it, and the regulator hailed Uber’s legal team and asked them to deliver a please explain.
“Fairness, transparency and accountability must be upheld in all customer interactions,” the Minster added.
[9]
Which gets The Register wondering why the Minister wasn’t angry when Namma Yatri introduced this scheme last year.
India’s government promotes home-grown tech and has a complex relationship with Big Tech which sees it court the likes of Uber for collaborations and investment while also regulating fiercely.
We’ve asked Uber for comment and will update this story if the company responds. ®
Get our [10]Tech Resources
[1] https://x.com/nammayatri/status/1910562031373107415
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aDBHPesJ7udKQ62d5980rQAAAUU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2025/03/14/india_rideshare_differential_pricing_investigation/
[4] https://www.theregister.com/2024/04/11/ola_exits_international_markets/
[5] https://www.theregister.com/2023/02/23/in_blow_to_ridesharing_apps/
[6] https://www.theregister.com/2022/05/11/indian_government_ridesharing_regulation_crackdown/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aDBHPesJ7udKQ62d5980rQAAAUU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aDBHPesJ7udKQ62d5980rQAAAUU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aDBHPesJ7udKQ62d5980rQAAAUU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://whitepapers.theregister.com/
Another Taxi Scam
Anonymous Coward
In Thailand Bolt introduced a 3min waiting period grace time, after this you get charged for keeping the driver waiting. Fair enough.
But now drivers say they have arrived before they have to start the waiting time clock. I've been charged waiting time well before the driver has arrived.
But its all GPSed, so screenshot map evidence that driver was nowhere.
Maybe if the drivers got a better cut they would not resort to these tactics?
India runs on baksheesh
Winkypop
Small bribes here and there.
I’ve watched baggage handlers at a regional airport ask every passenger for US$10 to “make sure” their bag was loaded on the aircraft. It’s how things work.
No, I didn’t pay. But I did wait to watch my bag get loaded.
Tips before service
Pascal Monett
Sure.
And I'm going to start sending my invoices before doing the work.
I'm sure my customers will appreciate . . .
What a crazy world we live in.
These guys are amateurs
Anonymous Coward
In Birmingham UK we pay for the full service in advance with fuck all to show for it.
Bribe and ride
PCScreenOnly
Thought tips were for good service
Tip:
Tip: To Insure [sic] Promptness.