Home / Business and Economy / Centre Stops Forced Tipping on Ride-Hailing Apps
Centre Stops Forced Tipping on Ride-Hailing Apps
12 Aug
Summary
- Ride-hailing services can no longer demand tips before booking.
- Mandatory tips are deemed misleading and manipulative by guidelines.
- Tips must be voluntary and offered only after trip completion.
The Central government has issued a directive prohibiting ride-hailing services from demanding tips at the time of booking. This practice has been classified as misleading and manipulative under the Motor Vehicle Aggregator Guidelines, contravening the Consumer Protection Act, 2019.
According to the directive, any tip must be voluntary and can only be made after the completion of the ride. Ride-hailing apps are forbidden from displaying prompts or interface elements that suggest an advance tip improves ride confirmation or service quality.
The Ministry of Road Transport has emphasized that tip features should only be visible post-journey. This action follows previous requests from the consumer protection authority to halt such practices, which have persisted on various ride-hailing platforms.
