Govt bans pre-ride tipping on cab apps, CCPA penalises Rapido

The government has directed cab aggregators to stop offering advance tipping options before a ride is booked, calling the practice misleading and an unfair trade practice. Consumer Affairs Secretary Nidhi Khare announced the order on Wednesday, a day after the Central Consumer Protection Authority imposed a Rs 10 lakh fine on ride-hailing platform Rapido for dark patterns including pre-ride tipping prompts. The regulator classified the practice as ‘Confirm Shaming’ under the Dark Patterns guidelines. Investigations into Uber and Ola are also underway.

Passengers in Bengaluru have welcomed the move, saying pre-ride tipping felt coercive. However, auto and cab drivers have raised concerns that the restriction could affect their daily earnings, pointing to aggregator commissions of 25-30% and rising costs. The Auto Rickshaw Drivers' Union called for a structured fare system with minimum fares and annual inflation-linked revisions, arguing that post-ride tipping should remain simple and accessible.