Now Reading: Centre bans advance tips on cab aggregators, orders post-ride option
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Centre bans advance tips on cab aggregators, orders post-ride option
The Ministry of Road Transport and Highways (MoRTH) has directed ride-hailing aggregators like Ola, Uber and Rapido to remove tipping prompts that appear before or during a journey. In an August 11…
The Story in Brief
The Ministry of Road Transport and Highways (MoRTH) has directed ride-hailing aggregators like Ola, Uber and Rapido to remove tipping prompts that appear before or during a journey. In an August 11 letter, MoRTH cited the Motor Vehicle Aggregator Guidelines, 2025, which require that tipping be offered only after a ride is complete. The Ministry warned that features such as “Advance Tip” or “Improve your chances of quicker ride confirmation” violate the Consumer Protection Act, 2019.
The Telangana Gig and Platform Workers Union (TGPWU) and the Indian Federation of App-Based Transport Workers (IFAT) welcomed the clarification but said voluntary tips cannot replace fair fares. They urged the government to set minimum base fare, per-kilometre and per-minute rates, and to ban the use of private vehicles for commercial rides.
The Indian Opinion
The tip-prompt ban is welcome consumer protection, but it does not fix what drivers actually face: fares so low that tips have become a survival crutch. Unions rightly call for a transparent fare structure and an end to commercial use of private vehicles. Aggregators created this tip-as-bribe culture. Now the test will be whether the government follows through with enforceable minimum fares, or leaves drivers to depend on customer generosity while platforms keep their margins intact.
Sources (2): thehindubusinessline.com, siasat.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
