Government Bans Pre-Booking Tip Requests; Major Setback for Ola, Uber, and Rapido

The government has cracked down on the arbitrary practices of cab aggregators regarding bookings. A ban has now been imposed on soliciting 'advance tips' prior to booking a ride, following numerous complaints received by the government on this matter.

The government has dealt a significant blow to cab booking companies like Ola, Uber, and Rapido. The Union Ministry of Consumer Affairs and the Central Consumer Protection Authority (CCPA) have issued strict directives to all cab aggregators to immediately stop the practice of collecting 'advance tips' before a ride is booked.

Nidhi Khare, Chief of the CCPA and Secretary of Consumer Affairs, stated that the government has clarified in its decision that asking customers for an extra tip before the ride is confirmed constitutes an 'unfair trade practice' falling under the category of 'dark patterns.'

Companies Pressure Passengers to Pay More

Essentially, through dark patterns, cab companies exert undue pressure on passengers to pay extra money to secure a cab quickly. According to the government's new order, tipping is entirely at the passenger's discretion; a passenger may choose to tip only after the journey, based on their experience. Tipping should be offered solely based on the service provided.

It is worth noting that just two days ago, the CCPA imposed a fine of ₹10 lakh on Rapido regarding the issue of advance tipping. Apart from Rapido, the CCPA has also announced plans to investigate Uber and Ola. Nidhi Khare stated that the National Consumer Helpline has received multiple complaints against Ola, Uber, and Rapido. These complaints allege that these cab companies demand advance tips before the ride begins. Furthermore, customers are pressured with the implication that their ride will not be booked unless they agree to pay the tip.

Investigation Reveals Use of Dark Patterns – Secretary

Secretary Nidhi Khare, while briefing the media, stated that the investigation confirmed these companies were employing dark patterns. The order prohibiting 'advance tips' was issued only after a thorough investigation and hearing regarding the matter. Prior to this, the CCPA had issued notices to several platforms—including Uber, Ola, Rapido, and Namma Yatri—directing them to curb dark patterns and comply with the guidelines issued in 2023 regarding such practices.