New Delhi: The Union government has instructed app-based cab and auto service providers to discontinue any feature that asks customers to pay a “tip” to drivers before a trip is booked.
Services offered through platforms such as Rapido, Ola and Uber allow users to book cars, autos and bikes via mobile apps. Authorities said several complaints received by the National Consumer Helpline alleged that customers were being pressured to tip in advance, with claims that rides may not be available otherwise.
Nidhi Khare, who heads the Central Consumer Protection Commission (CCPC) and also serves as Secretary in the Department of Consumer Affairs, said the practice was found to be misleading and an unfair trade practice. She stressed that tipping is voluntary and should be offered only after the ride, if the customer chooses.
The CCPC has also imposed a penalty of Rs 10 lakh on Rapido based on complaints of unfair practices. During a review of aggregator operations, the commission said it found app prompts suggesting that paying more could increase the chances of getting a confirmed ride, including messages asking users to add Rs 10 to Rs 30 for drivers.
According to the commission, inquiries indicated that after an initial fare was shown and a booking was made, drivers allegedly refused the quoted fare and pressed customers to pay extra. The CCPC said such prompts create a false impression that higher payment ensures faster availability and can push consumers into paying more due to fear of losing the ride after confirming the booking.
