Government orders cab aggregators to stop advance tipping before rides

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New Delhi: The government has directed cab aggregators to discontinue the option allowing passengers to tip drivers before a ride is booked, calling the practice misleading and an unfair trade practice.

Consumer Affairs Secretary Nidhi Khare said the National Consumer Helpline had received complaints from passengers who were asked to pay tips in advance.

They were made to believe that doing so could improve their chances of getting a ride, rather than tipping after the ride.

Khare stated that tipping should be voluntary and be left to the passenger’s discretion after completing the ride.

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This decision follows a sector-wide examination by the Central Consumer Protection Authority (CCPA) into the concept of advance tipping and other practices used by ride-hailing platforms.

The CCPA has also imposed a ₹10 lakh penalty on Rapido over alleged unfair business practices and the use of “dark patterns” in its ride-booking interface.

Investigations into the practices of Uber and Ola are ongoing.

The CCPA has mentioned that under the Motor Vehicle Aggregator Guidelines, 2025, tipping should be made available only after completion of the ride and not be presented before the ride to secure a driver.

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