India's Consumer Affairs Minister Pralhad Joshi has criticized Uber's new feature allowing users to tip drivers before a trip, a practice deemed unethical and exploitative. This ‘tip-first’ scheme, aimed at influencing quicker driver acceptance, is drawing widespread discontent among riders who compare it to an auction. Unlike competitors taking commission per trip, local company Namma Yatri charges drivers a fixed access fee, allowing them to keep all fares. The minister has urged regulators to investigate this practice as it violates principles of fair trade.
"The practice of 'Advance Tip' is deeply concerning. Forcing or nudging users to pay a tip in advance, for faster service is unethical and exploitative."
"Some riders don't like the scheme as they 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."
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