The Central Consumer Protection Authority (CCPA) has come down on pre-ride tipping mechanisms used by cab and auto ride aggregators, holding that a tip sought before a journey begins can effectively become a payment for preferential or faster service rather than a voluntary gratuity.
In two separate orders concerning Rapido and Namma Yatri, the consumer regulator examined features that encouraged passengers to pay above the quoted fare in the hope of getting a ride faster.
While the CCPA imposed a ₹10 lakh penalty on Rapido for misleading advertisements, unfair trade practices and dark patterns, it closed proceedings against Namma Yatri after noting that the latter had removed the offending prompt before the show cause notice and subsequently disabled its “extra fare” feature altogether.
The two cases arose from the same complaint received by the CCPA on May 16, 2025 regarding manipulative pre-ride tipping and pricing practices across ride-hailing platforms.
In Rapido’s case, the Authority took exception to prompts such as:
“Captains aren’t accepting at ₹60. Try adding +10, +20, +30.”
The platform also displayed the message: “Higher the price, higher the chance of getting a ride.”
The CCPA said the very premise of an “advance tip” was legally untenable since a tip is ordinarily paid after a service is rendered and assessed by the consumer.
“The very premise of ‘an amount over and above quoted fair’/‘advance tip’ is legally untenable,” the order stated.
It added that asking for such an amount before the service had even begun could make access to the service dependent on a consumer’s willingness and ability to pay more. The Authority also warned that such a mechanism could institutionalise price discrimination by giving lower priority to consumers unwilling or unable to pay over the quoted fare.
It further found Rapido’s interface to amount to “confirm shaming” and “interface interference” under the Guidelines for Prevention and Regulation of Dark Patterns, 2023. Rapido was directed to discontinue such prompts and pay a ₹10 lakh penalty.
A similar issue arose in the Namma Yatri case, where the app displayed:
“High Demand, adding a tip helps you find a ride faster.”
The investigation found that the prompt nudged consumers to pay extra and could disadvantage those who did not tip.
Namma Yatri, however, maintained that the feature was voluntary and that the amount went entirely to drivers. It also told the CCPA that removing the optional feature had caused an estimated ₹50 crore revenue impact, while other platforms continued to operate similar mechanisms.
The company also relied on data showing that rides with “extra fare” had longer average pickup times and lower driver acceptance rates, to argue that such passengers did not receive preferential treatment.
The CCPA eventually closed the proceedings after noting that Namma Yatri had removed the “high demand” message before the show cause notice and later completely disabled the Extra Fare feature. The Authority also referred to the Motor Vehicle Aggregator Guidelines, 2025, which permit voluntary tipping only after completion of the journey and not at the booking stage or during the ride.
Rapido was represented by Advocate Kaustav Som.
Namma Yatri was represented by Advocate Bhavya Mohan of Argus Partners.
[Read Rapido Order]
[Read Namma Yatri Order]