2 weeks ago
Centre Orders Uber, Ola, Rapido to Remove Pre-Ride Tip Prompts
Some ride-hailing apps in India asked passengers to give a tip before their ride even started.
They showed messages like "Advance Tip" and "Improve your chances of quicker ride confirmation."
This made passengers think that paying extra would help them get a ride faster or get a better driver.
The Indian government said this is not allowed.
It said tips should be voluntary and should only be given after the ride is over.
The government's rules for ride aggregators say the tip option can only be shown once the journey has finished.
The government said such messages are misleading and unfair to passengers under the Consumer Protection Act, 2019.
Earlier, the consumer protection authority had also told the apps to stop, but the prompts kept appearing.
So the government ordered apps like Uber, Ola and Rapido to remove the feature right away.
Tipping is not banned — passengers can still tip voluntarily if they are happy with the ride.
India's Ministry of Road Transport and Highways directed ride-hailing aggregators Uber, Ola and Rapido to immediately remove pre-ride tipping prompts from their apps.
The ministry called the practice "misleading, manipulative, or otherwise in violation of the Consumer Protection Act, 2019".
Clause 14.15 of the Motor Vehicle Aggregator Guidelines states the tip feature "shall only be visible after the completion of the journey".
Apps had been displaying prompts such as "Advance Tip", "Choose an Add-on" and "Improve your chances of quicker ride confirmation".
The Central Consumer Protection Authority had earlier issued Uber a notice over the practice, and Consumer Affairs Minister Pralhad Joshi had called it "unethical and exploitative".
- Who
- The Ministry of Road Transport and Highways (MoRTH) issued the directive, targeting ride-hailing aggregators Uber, Ola and Rapido; the Central Consumer Protection Authority had earlier acted on the practice.
- What
- The ministry ordered ride-hailing apps to remove pre-ride tip prompts and show tipping options only after a journey is completed, calling the practice misleading and in violation of the Motor Vehicle Aggregator Guidelines and the Consumer Protection Act, 2019.
- Where
- India.
- When
- According to one report, the directive was issued on August 11; the other report gives no specific date.
- Why
- The government said pre-ride tip prompts create the impression that paying extra improves ride confirmation, driver acceptance, driver allocation, waiting time or quality of service, which it considers misleading and manipulative.
Paying passengers and pro-tip voices
Regulators and consumer advocates
Does advance tipping speed up rides?
Paying passengers and pro-tip voices
Accounts from drivers' unions suggested riders who tipped in advance during busy hours often got picked up faster, and those paying extra appeared to get better service.
Regulators and consumer advocates
The government says such prompts mislead passengers into thinking extra payment improves ride confirmation, driver acceptance, waiting time or service quality, and undermine a level playing field.
Impact on drivers' earnings
Paying passengers and pro-tip voices
Advance tips added extra earnings for some drivers during peak hours, and the order could cut into that income.
Regulators and consumer advocates
Removing pre-ride tipping ends the industry-wide pressure and reputational backlash of being seen as extracting money upfront, keeping tips as genuine appreciation after the ride.
Key facts
- Issuing body
- Ministry of Road Transport and Highways (Road Transport Ministry)
- Affected platforms
- Ride-hailing aggregators Uber, Ola and Rapido
- Date of directive
- August 11 (per one report)
- Banned practice
- Tips or add-ons requested before ride confirmation or completion
- Key guideline
- Clause 14.15, Motor Vehicle Aggregator Guidelines
- Applicable law
- Consumer Protection Act, 2019
- Allowed timing
- Voluntary tips only after completion of the journey
- Prior action
- CCPA notice to Uber; minister called practice "unethical and exploitative"
Quotes
Consumer Affairs Minister Pralhad Joshi
Government minister overseeing consumer affairs
“The attention of this Ministry has been drawn to the display by certain ride aggregators of prompts/options such as "Advance Tip", "Choose an Add‑on", "Improve your chances of quicker ride confirmation", "A driver may be more likely to accept this trip if you add a tip", or similar interface elements prior to acceptance or completion of a ride.”
NDTV
“"unethical and exploitative"”
wionews.com
Sources
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