Want a faster ride by tipping? This option will no longer appear on apps; the government issues strict directive.
Ola-Uber Booking News: The government has implemented strict regulations for ride-hailing apps. Find out how the new guidelines regarding tipping will impact companies like Ola, Uber, and Rapido.
Cab and Taxi Rules: There is significant news for passengers booking cabs and bike taxis. The Ministry of Road Transport and Highways has issued strict directives to all motor vehicle aggregators regarding 'advance tipping.'
The Ministry has clearly stated that before a ride is completed, passengers cannot be shown any option, button, message, or prompt suggesting that a higher tip would increase the likelihood of a driver accepting the ride or arriving sooner. The Ministry has sent letters to all motor vehicle aggregators, instructing them to review their apps and digital platforms.
What is the government's new directive?
According to the Ministry, it has come to their notice that some ride-aggregator apps are displaying options for 'advance tipping' to passengers before the ride is accepted or completed.
These include messages or prompts suggesting that adding a tip could increase the chances of the ride being confirmed or the driver accepting the trip. The government has deemed this a violation of Clause 14.15 of the Motor Vehicle Aggregator Guidelines 2025.
Tips can only be given after the ride is completed.
Under the rules, passengers may voluntarily tip the driver, but the tipping option can only be displayed after the journey concludes; the option to tip cannot be provided on the app at the time of booking, before the ride starts, or during the ride itself. Furthermore, the driver must receive the full tip amount; the aggregator cannot make any deductions from it.
The guidelines also state that there should be no tipping feature that is misleading or manipulative, or that violates the Consumer Protection Act, 2019, and the rules framed thereunder. It’s not just the 'Tip' button; even subtle hints won't pass muster.
The Ministry has clarified this further in its letter. No feature, prompt, message, add-on, payment option, or user interface element should be displayed before the ride concludes that directly or indirectly suggests paying extra will:
Lead to a quicker ride confirmation
Increase the likelihood of a driver accepting the ride
Give an advantage in driver allocation
Reduce waiting time
Improve service quality
Simply removing the word 'Tip' will not suffice. If the app's design itself nudges the passenger to pay more by implying better service in return, it could still fall foul of the regulations.
Aggregators asked to review apps immediately
The Ministry has directed all aggregators to review their mobile apps and digital platforms and ensure full compliance with Clause 14.15. If any app contains an interface or feature that violates these provisions, instructions have been issued to modify it without delay.
The issue has been raised before
The issue of 'advance tips' is not new. In May 2025, the Central Consumer Protection Authority (CCPA) issued a notice to Uber regarding its advance tip feature.
The then Consumer Affairs Minister, Pralhad Joshi, termed advance tipping unethical and exploitative, stating that a tip should be given to express gratitude after the service is rendered, not as a condition for availing the service. He further noted that the CCPA was examining the features of other ride-hailing apps like Ola and Rapido and that notices could be issued to them as well if necessary.
What happens next?
The Ministry's latest letter does not name any specific company. Nor does it specify a deadline for compliance or explicitly state the consequences of non-compliance. While the letter is advisory in nature, it pertains to adherence to a specific provision of the Motor Vehicle Aggregator Guidelines. Another important point is that the Motor Vehicle Aggregator Guidelines are implemented by the states. In this context, the role of state transport departments could prove crucial going forward.
