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Month after CCPA notice, advance tipping continues on Ola, Uber, Rapido, and Namma Yatri

EntrackrEntrackr · 8m ago
Month after CCPA notice, advance tipping continues on Ola, Uber, Rapido, and Namma Yatri
Medial

Month after CCPA notice, advance tipping continues on Ola, Uber, Rapido, and Namma Yatri More than a month after the Central Consumer Protection Authority (CCPA) issued a notice to ride-hailing apps such as Ola, Uber, and Rapido over their advance tipping feature, the controversial practice still remains active on these platforms. The advance tipping feature allows users to tip for a service in advance, which many view as a tactic to nudge drivers into accepting pickups. Users have criticized the feature, reporting being nudged or defaulted into paying tips before even beginning their ride, calling it misleading and unfair. As of June 22, there has been no public update on the progress of the investigation. Union Consumer Affairs Minister Pralhad Joshi stated that the government takes these concerns seriously and that the CCPA is investigating. Despite this, Ola, Uber, Rapido, and Namma Yatri still show users tipping options during the payment process or in the fare summary. Many users on platforms like X and Reddit have complained about being charged tips by default or not having a clear way to opt out. An Uber spokesperson said, “We are committed to providing a world-class experience every time someone chooses Uber. Based on feedback from riders, drivers, and our broader community, we’ve made some updates to the app. We continue to engage with the authorities on this issue." Ola, Rapido, Namma Yatri, and the CCPA did not respond to queries until the time of publication. Critics argue that placing tipping within the booking process without clear consent amounts to an unfair trade practice. The continuation of the feature has prompted questions about regulatory enforcement and raised concerns about violations of consumer rights. Earlier this year, Ola and Uber received notices from the CCPA over alleged fare disparities between iPhone and Android users. However, both companies denied the claims and maintained that they follow a uniform fare structure regardless of the smartphone used.

Uber pumps Rs 3,000 Cr in India to compete new leader Rapido

EntrackrEntrackr · 20d ago
Uber pumps Rs 3,000 Cr in India to compete new leader Rapido
Medial

Uber has infused nearly Rs 3,000 crore (around $330 million) into its Indian subsidiary, Uber India Systems Pvt Ltd, amid intense competition in the ride-hailing market, as Rapido expanded its market share rapidly. The board of Uber India allotted 14.4 million equity shares at an issue price of Rs 2,022.85 each to raise Rs 2,921 crore, according to its filing with the Registrar of Companies (RoC). The parent entity of Uber India Systems Pvt Ltd, Uber B.V., invested the above-mentioned amount in two tranches. The first tranche of Rs 200 crore came in November, followed by Rs 2,721 crore in January this year. This much-needed investment came at a time when Uber India Systems Pvt Ltd reported an 89% decline in net revenue from ride-hailing to Rs 88 crore in FY25 from Rs 807 crore in FY24. Interestingly, the sharp decline comes despite the ride-hailing biz's gross revenue (commissions from rides) remaining flat at Rs 2,604 crore during the year. Meanwhile, rival Rapido crossed Rs 1,000 crore in income in FY25 and increased its market share rapidly. The company last raised Rs 125 crore in June 2025 from Nexus Venture Partners. According to media reports, Uber India Systems Pvt Ltd commands around 45% of the four-wheeler ride-hailing market, followed by Ola with a 25–30% share. Rapido, which entered the cab segment in late 2023, has already captured more than 20% of the market. Overall, Rapido has emerged as the largest ride-hailing platform in India in terms of total number of rides, with a 50% market share, followed by Uber at 40%, according to Entrackr sources. The company has a clear lead in the bike and three-wheeler segments, with over 65% market share. Uber’s chief executive officer, Dara Khosrowshahi, also admitted that Rapido is the biggest competitor for the global ride-hailing giant.

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