Ola, Uber, and Rapido will no longer ask for a tip before a ride; the government has imposed a fine of ₹10 lakh on Ola..

Have you ever noticed an option on the Ola app—appearing after booking a cab but before a driver is assigned—to pay extra as a "tip" or "add-on"? If so, the company will no longer be permitted to solicit such payments. The Central Consumer Protection Authority (CCPA) has classified this practice by Ola as an "unfair trade practice" and a "dark pattern." The authority has imposed a penalty of ₹10 lakh on the company and ordered the immediate discontinuation of all prompts requesting additional payments before a ride is completed.

This action has been taken against ANI Technologies Private Limited, the operator of the Ola Cabs platform. According to the CCPA, while the Ola app was searching for a driver, users were told that providing a tip could increase the likelihood of securing a ride more quickly. The company later rebranded these "tips" as "add-ons," but the method of soliciting these payments remained unchanged.

Why is the claim that a tip leads to a faster ride considered misleading?
The CCPA examined various activities within the Ola app and identified several messages, such as:

"Providing a tip may increase your chances of getting a ride sooner."
"Tip now to increase your chances of getting a ride faster."
"Increase your chances of a quick ride confirmation."

These messages appeared while the app was searching for a driver, accompanied by payment options for specific amounts—such as ₹10, ₹20, or other fixed sums. This led users to believe that paying extra might encourage a driver to accept their ride request more quickly.

Ola’s own data shows that users who opted for "add-ons" were less likely to secure a ride.
The CCPA analyzed Ola’s booking data from June 1 to June 15, 2026. It was discovered that ride requests accompanied by an "add-on" had a lower acceptance rate compared to requests made without one.

In other words, despite making an additional payment, the rate at which rides were accepted remained lower. Despite this, the app suggested to users that paying an additional amount could increase the likelihood of securing a cab more quickly.
The authority also identified a contradiction in Ola’s stance. On one hand, the company claimed that these "add-ons" had no bearing on a driver’s decision to accept a ride; yet, on the other, the app linked such additional payments to a higher probability of getting a ride faster.

Furthermore, the company failed to disclose to users that, according to its own data, ride requests accompanied by these add-ons had a lower acceptance rate. Additionally, there was no information provided regarding the basis upon which these suggested amounts were determined. The CCPA classified this as a case of withholding essential information, in violation of consumer protection laws.

Why was money being solicited as a "tip" in advance?
The CCPA noted that a tip is typically a voluntary payment made after a service has been rendered. In Ola’s case, however, a tip was being requested before the ride had even taken place—effectively transforming a voluntary gesture into a mandatory pre-service payment.

The authority further pointed out that a customer books a cab at a pre-determined fare, which already accounts for factors such as peak-hour pricing and the distance the driver must travel to reach the pickup location. Demanding extra payment for the same ride, therefore, amounts to charging an additional premium.

According to the CCPA, in May 2025, the suggested additional amounts ranged from ₹10 to ₹40. This figure later increased, reaching as high as ₹140. The app even offered users the option to pay as much as ₹499.

Use of "Confirm Shaming" as a Dark Pattern
The CCPA also examined Ola’s app design, identifying the use of "dark patterns"—specifically categorizing it as "confirm shaming."

This refers to the practice of using app design elements or messaging to pressure a user into selecting a particular option. In the case of Ola, users were given the impression that if they did not pay an additional amount, they might face delays in getting a cab, or their ride might not be confirmed.

The authority also raised objections to several other practices:

Users were nudged toward paying a higher amount by having pre-selected payment options displayed to them.
Messages such as "Generous Add-On!" encouraged additional payments.
Users were not provided with an option to dismiss or close these prompts.
These messages were displayed after a ride was booked, at a time when information regarding driver availability was not yet provided.
The CCPA noted that such requests also appeared for rides booked from locations like hospitals, railway stations, inter-state bus terminals, and airports. Such messages could disproportionately affect vulnerable groups, including patients, the elderly, individuals traveling with luggage, and those traveling alone at night.

What instructions were issued to Ola?
The CCPA has directed Ola to immediately discontinue all such messages and options that solicit payments—whether labeled as tips, add-ons, extra fares, or under any other name—before a ride is completed.

The company has also been instructed to comply with the Consumer Protection Act, 2019, the 2023 guidelines on the prevention of 'dark patterns,' and the 2022 guidelines concerning misleading advertisements. Additionally, the company is required to pay a penalty of Rs 10 lakh.

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