The government has asked cab aggregators to discontinue advance tipping options that allow passengers to tip drivers before a ride has even begun.
Consumer Affairs Secretary Nidhi Khare said on September 16 that tipping is completely voluntary and should remain at the discretion of consumers after they have completed their ride.
The direction comes a day after the Central Consumer Protection Authority (CCPA) imposed a ₹10 lakh penalty on ride-hailing platform Rapido for alleged unfair business practices. The action included the platform’s practice of offering an option for passengers to tip drivers in advance.
The government’s position is that consumers should be able to decide whether to tip based on their experience after the service has been provided, rather than being prompted to make the decision before the ride.
The move is part of wider consumer-protection scrutiny of practices followed by digital ride-hailing platforms. Advance tipping has raised concerns over whether consumers may feel encouraged or pressured to make a payment before receiving the service.
The government’s latest direction could lead cab aggregators to review how tipping options are displayed during the booking and payment process.