Govt moves against pre-ride tipping on cab apps

The government has instructed cab aggregators to cease offering advance tipping options that prompt passengers to pay drivers additional money before a ride is confirmed. Consumer Affairs Secretary Nidhi Khare stated that this practice is deemed misleading and constitutes an unfair trade practice. The directive follows a day after the Central Consumer Protection Authority (CCPA) imposed a Rs 10 lakh fine on ride-hailing platform Rapido for various questionable practices.

The regulator is also scrutinizing the operations of Uber and Ola. These actions stem from complaints lodged with the National Consumer Helpline regarding cab aggregators that encouraged passengers to tip before taking a ride, allegedly coercing them into doing so under the threat of being denied a ride. Khare emphasized that tipping should be entirely voluntary and should not influence a passenger's decision to book a ride.

The government's investigation encompasses a wider examination of cab and bike-taxi aggregators, focusing on pre-ride tipping and dynamic pricing practices. The CCPA had previously issued notices to Uber, Ola, Rapido, and Namma Yatri, urging them to adhere to the 2023 Guidelines for Prevention and Regulation of Dark Patterns, which pertain to deceptive user-interface designs or practices that manipulate consumers into making choices they might not otherwise make.