The Central Consumer Protection Authority (CCPA) has recently scrutinized the pre-ride tipping practices employed by cab and auto ride aggregators, emphasizing that requesting a tip before a journey starts may transform it into a payment for preferential treatment rather than a voluntary gratuity. In its assessments involving Rapido and Namma Yatri, the CCPA evaluated features that potentially encouraged passengers to offer amounts exceeding the quoted fare to secure quicker rides.
In a decisive action, the CCPA levied a ₹10 lakh fine on Rapido, citing misleading advertisements, unfair trade practices, and the use of dark patterns. Conversely, the proceedings against Namma Yatri were concluded without penalties, as the service had proactively eliminated the disputed prompt prior to the issuance of a show cause notice and subsequently deactivated its “extra fare” feature altogether.
Both cases originated from a May 16, 2025, complaint to the CCPA addressing manipulative pre-ride tipping and pricing strategies across various ride-hailing platforms. The Authority criticized Rapido for employing prompts like: “Captains aren’t accepting at ₹60. Try adding +10, +20, +30,” and “Higher the price, higher the chance of getting a ride.” The CCPA argued that the concept of an “advance tip” is inherently flawed, as tipping is traditionally a post-service gesture, reflecting the consumer’s service assessment.
The CCPA stated, “The very premise of ‘an amount over and above quoted fare’/‘advance tip’ is legally untenable,” and highlighted that such requests could make service access contingent on a consumer’s readiness to pay extra. The Authority cautioned that this approach might institutionalize price discrimination, disadvantaging consumers unwilling or unable to exceed the quoted fare. Furthermore, Rapido’s interface was labeled as “confirm shaming” and “interface interference” per the Guidelines for Prevention and Regulation of Dark Patterns, 2023. Consequently, Rapido was ordered to discontinue these prompts and pay a ₹10 lakh penalty.
In parallels drawn with Namma Yatri’s case, the app prompted users with: “High Demand, adding a tip helps you find a ride faster.” The investigation found this message nudged users to tip, potentially disadvantaging those who chose not to. Namma Yatri argued that the feature was voluntary, with all additional funds directed to drivers. The company reported a significant revenue impact of approximately ₹50 crore following the feature’s removal and pointed out that similar mechanisms remain in use by other platforms.
More Read
Namma Yatri also presented data indicating that rides with “extra fare” experienced longer pickup times and lower driver acceptance rates, suggesting no preferential treatment was afforded. The CCPA decided to close the case after acknowledging that Namma Yatri had removed the “high demand” prompt before receiving the show cause notice and had entirely disabled the Extra Fare feature. Additionally, the Authority referred to the Motor Vehicle Aggregator Guidelines, 2025, which sanction voluntary tipping only after journey completion, not during booking or in transit.
Legal representation in these cases was provided by Advocate Kaustav Som for Rapido, and Advocate Bhavya Mohan of Argus Partners for Namma Yatri.
[Read Rapido Order] [Read Namma Yatri Order]
