Centre Orders Cab Aggregators to Stop Advance Tipping

The Union government has directed cab and bike-taxi aggregators to discontinue the practice of offering passengers an option to pay an additional tip before booking a ride. Consumer Affairs Secretary and CCPA Chief Commissioner Nidhi Khare said advance tipping can amount to a misleading and unfair business practice. She clarified that tipping should remain voluntary and can be offered by a passenger after the ride if they are satisfied with the service.

The Central Consumer Protection Authority has imposed a ₹10 lakh penalty on Roppen Transportation Services, which operates Rapido, over misleading tipping prompts and dark patterns in its ride-booking interface. The CCPA objected to prompts suggesting that paying more could increase the chances of getting a ride and encouraging users to add extra amounts. It also flagged interface design that could steer consumers towards paying higher fares. The CCPA is examining advance tipping and dynamic pricing practices across other ride-hailing platforms, including Uber and Ola.