'Stop advance tip feature': Centre tells ride-hailing apps to discontinue practice

The Indian road transport ministry has directed ride-hailing companies to eliminate any features in their mobile apps that encourage passengers to tip drivers during the booking process, claiming such practices contravene the Motor Vehicle Aggregator Guidelines of 2025. The advisory comes in response to complaints that aggregators display options like "Advance Tip", "Choose an Add-on", and "Improve your chances of quicker ride confirmation".

Some apps even inform riders that tipping a driver might increase the likelihood of a faster ride confirmation. The ministry highlighted a specific guideline stipulating that passengers can only voluntarily tip drivers post-ride completion, and that the full amount must be paid to the driver without any deductions by the aggregator.

According to the guidelines, any tipping feature or mechanism displayed before a ride concludes must not be misleading, manipulative, or breach the Consumer Protection Act of 2019 or related regulations. The ministry emphasized that no element should appear before a ride's completion that suggests a financial incentive could enhance ride confirmation, driver acceptance, allocation, wait time, or service quality.

Previously, the Central Consumer Protection Authority had also warned these platforms against this practice.