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Government Orders Cab Apps to Remove Pre‑Ride Tipping Options

Regulators say advance tipping used coercive 'confirm shaming' tactics, prompting probes of other major platforms.

Overview

  • On Wednesday the central government directed app‑based cab and bike‑taxi services to stop offering passengers the option to tip drivers before a ride is booked and said tipping must remain voluntary after the journey.
  • The Central Consumer Protection Authority imposed a ₹10 lakh penalty on Rapido for showing prompts that created urgency and suggested paying more would improve the chance of getting a ride.
  • The CCPA has opened investigations into Uber and Ola for similar user‑interface prompts and is also reviewing dynamic fare adjustments and algorithmic messages that appear after booking.
  • Commuter groups and the Telangana Gig and Platform Workers Union welcomed the action and urged platforms to offer a clear, voluntary post‑ride tipping option while preventing hidden charges that reduce drivers’ earnings.
  • The enforcement relies on the 2023 Guidelines for Prevention and Regulation of Dark Patterns and could require app interface redesigns, further penalties, or formal corrective orders for ride‑hailing platforms.