Centre Takes Serious Note of Cab Ride Companies

The Ministry of Road Transport and Highways has directed cab aggregators such as Ola and Uber not to prompt passengers to pay tips while booking a ride. The ministry said the option to pay a tip should not appear before the ride begins. Apps must also avoid messages, notifications or options that could create the impression that paying an additional tip would help passengers get a cab faster, encourage drivers to accept the ride sooner or result in quicker booking confirmation.

The government clarified that passengers may tip drivers voluntarily only after completing the ride. The entire tip amount must go directly to the driver, with no share going to the aggregator or cab company. The directions follow reports that some ride-hailing apps were displaying advance-tip options and messages suggesting that additional payments could improve the chances of getting a ride quickly. The Central Consumer Protection Authority had earlier directed aggregators to stop the advance-tipping practice, and the latest transport ministry order further reinforces the requirement.